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Shelf .K.'B.J.Ta- 
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UNITED STATES OF AMERICA. 

















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NOTES 


ON 


CIVILIZATION, 


OVER-PRODUCTION, 


COMPETITION, 


PROTECTION, 


SILVER QUESTION, 


CHINESE, ETC. 


GIVING— 


A CAUSE TOR THE PRESENT DULL TIMES 





v 



\.\A 

Frederic Grimm. 



* 


SAN FRANCISCO : 








/ / 



I 


Copyright^ 1886, 

By Frederic William Grimm. 


<n 





NOTES ON CIVILIZATION. 


CHAPTER I. 

r. THE POOR WHITE. 

What are known as poor whites in many sections of 
the United States, or Missourians in the far West, are 
white people who do not care for more than a rude, 
coarse living. Can they obtain such a living by work¬ 
ing fifteen or twenty weeks in a year, they will not 
work more than fifteen or twenty weeks. Neither will 
they try to learn to be first class workmen at any thing 
they work at. In no way do they show any desire 
for more than a frugal, economical existence. 

Does one suppose a state to contain none other 
than a people, who care but for a shanty, hog, hominy, 
(or similar food) coarse clothes, whisky, and tobacco, 
then one can see that only a demand for workmen to 
produce shanties, etc., will exist. No mechanics will 
be demanded, for the coarse products required for a 
cattle existence, can be made by any common laborer. 

In California where whole districts are settled by 
this class, one can travel for days and see no work that 
requires fine mechanics. There is only a demand for 
laborers. Not only poor work, but very little of it can 
be found. In fact a Mexican village or a digger Indian 
camp, are as good places for a fine mechanic to find 
work in, as a district settled with Missourians or a simi¬ 
lar class from Europe or other parts of United States. 



[ 4 ] 

2. THE MORE CIVILIZED WHITE. 

T hese are people who are not so coarse tasting, and 
who, have they the opportunity, will work so as to ob¬ 
tain a finer quality of living than the poor whites are 
satisfied with. They will want finer shelter, perhaps 
artistically built stone houses, are they of the highest 
taste ; they will want a large variety of finely cooked 
food, fine clothes, etc.; they will want books, music, 
paintings, etc. In every way they will want of the 
best they can get ; also will try to be excellent work¬ 
men instead of scrubs. There will be nothing of the 
scrub about them. 

When a state is full of such people, a demand for 
fine stone and brick masons, sculptors, joiners, cabinet 
makers, gardeners, cooks, bakers, tailors, etc., will 
exist. Also printers, paper makers, book binders, and 
scores of other such workers will be in demand. 

3. CIVILIZATION. 

What I mean by civilization can now be shown. It 
is the difference in the desires of a people. Do one 
people demand a finer living than another, then they 
are more civilized. The tastes of a people, as I see it, 
have all to do with the style they live in, and deter¬ 
mine their civilization. 

If one state is filled with people who have no taste 
for more than shanties, coarse food, clothes, etc., as 
regards necessities, with coarse whisky and tobacco for 
luxuries, while another state is filled with people who 
want fine stone buildings, etc., then there will be a 
difference in civilization caused by the different tastes 
of the two kinds of people. In one state a first class 
mechanic would starve, while in the other a scrub 
would find it hard to obtain work. 




[ 5 ] 

4 - TASTE AND INDUSTRIAL DEMAND. 

Were all of poor white taste, man could group in 
small villages or communes and live as socialists dream 
of. Between planting and harvesting seasons, it will 
be easy for the socialists to make or repair hovels, coarse 
furniture, clothes, etc. Any one can see that the con¬ 
sumption of scrubs is so little, that it is easy for them 
to make what thev need, when usings but the common- 
est hand tools. As they have no artistic desire the 
coarse output of a scrub laborer will satisfy all their 
longings for quality. 

Mining as we know it to-day need not be carried on. . 
A few score pounds of iron will last a family for a gen¬ 
eration. The little ore necessary to supply them with 
metallic products can be taken from surface croppings, 
as is now done amono- savages. 

o 

All becomes different when people have a taste for 
fine stone constructions, etc. The demand for fine 
stone buildings calls for quarrymen, masons, lime burn¬ 
ers, sculptors, stone polishers, etc. These in their turn 
require tools of all kinds. Again, fine furnishings for 
houses calls for rare lumber, etc., besides fine carpen¬ 
ters, joiners, cabinet makers, etc., all of which calls for 
tools, etc.. 

On this one item of shelter, where a scrub will be 
satisfied with a shanty and rough furniture and so give 
no work to any but a laborer or scrub mechanic, one 
can see how great the change made by the existence 
of a higher taste. Scores of trades or callings can be 
traced to this one demand of shelter by civilized peo¬ 
ple. 

With food it is the same. Poor whites, if left to them- 


* 


[ 6 ] 

selves, will raise the food that takes the least labor. If 
two varieties will do for an existence, they will not 
raise more than two varieties. They will live year in 
and year out like savages or cattle, on the same two or 
three varieties of food. With the civilized it is differ¬ 
ent, they demanding many varieties and wanting them 
finely prepared. This calls for scientific farming, also 
for fine cooks, bakers, etc., while creating a demand for 
fine kitchen furniture, etc.. 

With clothes and even such luxuries as liquor and 
tobacco the civilized differ from the scrub. One like a 
savaofe has no taste for quality, the other demands the 
finest. 

In books, music or arts of all kinds, and in roads, 
bridges, docks, ships, etc., the civilized demand things 
that the poor white has no use for. It is not because 
of poor whites in United States to-day, that ships, docks, 
roads, etc., are needed, but because there are others 
than poor whites in existence. 

The thousands of workmen who find work on roads, 
bridges, ships, docks, etc., also as printers, type founders, 
book binders, etc., etc., would be without work were all 
of the taste of poor whites. 

* One can now see how -the industrial class is built up, 
and how it comes that in some places only a few scrub 
mechanics can get work, while in others many fine 
mechanics are employed. It all lays in the tastes of a 
people. Where Missourians hold out, Missouri mechan¬ 
ics are wanted, etc. 


5. ON NON-LABOR EXPENDITURE. 

Many people consider that if only a man spends his 
money and so helps to keep money in circulation, that 


it is all right, That this idea is wrong and that little 
good as regards labor can come from some kinds of 
spending, I will try to explain. The expenditure of 
money on harlots, pimps, gamblers, etc., does not create 
much demand for labor, but creates a demand for har¬ 
lots, etc. Where many create such a demand, there 
may be found many harlots, pimps, gamblers, etc., while 
comparatively few workers will be seen. 

Many gold miners who came to California in early 
days lived on pork and beans, wore cheap clothes and 
spent the bulk of their earnings on rotten women, gam¬ 
blers, etc. The demand for labor by such men 
amounted to little, because they consumed little that 
labor created. 

To see the full effect of this kind of expenditure, let 
one suppose that a state be mainly filled with said 
miners, and further, that each receives $1200 income per 
year, with food, etc., at present prices. 

First, the scrubs would build cabins or hovels. Next, 
lay in a supply of coarse food, clothes, etc. In all 
about 150 dollars, expended on food and other ne¬ 
cessities, would supply a scrub for a year. 

The balance of a scrub’s $1200, or $1050 would go for 
harlots, betting on races or other gambling, gfettinpf 
drunk and having a good time in scrub fashion. The 
scrubs will consume some whisky and tobacco, which of 
course means some labor product consumed. 

Of the 150 dollars expended for necessities, not over 
sixty need go for labor, the balance going to traders, 
etc. At $2.00 per day, this means thirty days’ labor. To 
this thirty days’ labor must be added the labor consumed 
in whisky and tobacco, or say twenty days more. One 




[ 3 ] 

now has a total of fifty days’ labor product consumed by 
a scrub when spending $1200 of income. 

A virtuous girl would only have a show to earn about 
ten dollars on such a scrub’s consumption. This ten 
dollars’ worth of work may be had in making the clothes, 
blankets, etc., the scrub wears out. A rotten girl, how¬ 
ever, may get as high as $500 of the $ 1200. So one can 
see that for every ten such a piece of animated carrion 
gives to a virtuous girl, he may give $500 to one of his 
own rotten spirit. 

Being rotten souled themselves, this class creates a 
demand mainly for rotten girls, pimps, gamblers, etc. 
Where they exist a better grade of people have little 
show to live. 

One can now see why, if a man saves on his living, in 
order to have gambling, spreeing or harlot money, that 
he gives little work to honest labor. Does a State have 
many of this low class in it, then it must be a poor 
place for work. 

In San Francisco there are many people of this spirit. 
They often enjoy good incomes, while they do not 
give others much work. They spend the most of their 
wages on rotten girls, gamblers, etc.. This is one rea¬ 
son why rotten girls do so well in San Francisco and 
virtuous girls must compete with Chinese. It is all 
because of the spirit of many of the San Francisco peo¬ 
ple. Fill California with men of rotten taste and it 
will show in the demand for labor. Such men think it 
smart to get drunk, slobber over rotten females, gam¬ 
blers, etc., and so shape their demand. They will 
save on their living in order to have money to spend 
on pleasures. 


[ 9 J 

6 . CIVILIZATION AND SAVING MONEY. 

If everybody lived like a poor white or serf in order 
to save money, then there would be no demand for 
workmen in order to make fine products. Whether 
men live like cattle from taste, or from a desire to have 
harlot money, or for economy’s sake, it is all the same as 
regards consumption. One thing is certain, if no one 
wants more than a hovel, breech clout and potatoes, no 
one will get work at any thing but hovel, breech clout,, 
and potato production. 

7. CALIFORNIA AND IMMIGRATION. 

There are 40,000 workers in every 100,000 people* 
besides females enough for wife and home duty. These 
40,000 must get work, and if only breech clouts and 
potatoes were demanded, they all would have to get 
work at such production. Now if 2,000 could do all 
the work, it stands to reason, each of the 40,000, if the 
work were equally distributed among them, would not 
get over three weeks’ work. The rest of the time they 
could loaf. Now while the poor white consumption i s 
not down to hovel, breech clout, etc., still it is so low 
that no more than 15,000 workers are needed to sup¬ 
ply the demand of 100,000 poor whites. The result 
one can see by going into counties filled with poor 
whites, in the large amount of loafing done. 

An evil effect of too low consumption can be seen by 
supposing that during 1886, California will receive 100,_ 
000 immigrants, and that these are all Missourians or of 
similar kind from other white countries. As this 100,- 
000 comes pouring into the state, they will create a 


[ 10 J 

demand for what 15,000 workers, traders, etc., can 
produce and sell, while they will bring with them 4°r 

000 workers hungry for a job. 

One can see if 40,000 workers come into the State, 
do they create work for but 15,000 workers, that it 
is not going to benefit the State. by the time 
the State has a million more population, if of this kind, 
250,000 idle workers will be added to those now idle in 
the state. 


OVER-PRODUCTION. 


CHAPTER M. 

8. SAVING MONEY AND OVER-PRODUC¬ 
TION. 

Would saving money only cause a people to exist like 
poor whites it would not be so bad, for they could divide 
the work that is, among them, each getting enough 
work to enable each to buy the scrub living that suits 
him. But this is not so, for saving can and does cause 
most of the over-production. 

The over-production appears as soon as more money 
is saved than is spent on construction or capital build¬ 
ing. For example, suppose during 1886 the people of 
San Francisco saved twenty millions, which all went 
into savings banks, while but ten millions were taken 
from the banks and spent in building homes, factories, 
etc., or in repairing and improving constructions of all 
kinds. The result would be that ten millions of over¬ 
production would result. Had not a dollar been spent 
for constructions, then twenty millions over-production 
would have resulted. The over-production can be San 




Francisco factory product or merchandise gained through 
trade. 

From this it will be seen, that saving money must be 
spent for constructions as fast as it is saved, if no over¬ 
production is wanted. Investing it in stocks, improved 
property, etc., will not do. It must be so invested that 
it will cause consumption of labor products. 

9. UNLOADING OVERPRODUCTION. 

When overproduction exists it must be gotten rid of 
by unloading on outsiders, and taking coin or property 
for it. Will San Francisco have ten millions overpro¬ 
duction on hand by 1887, can s ^ e unload this on the 
outside it will not hurt San Francisco production. U 
San Francisco can not unload, then it will lay on the 
hands of San P'rancisco people and depress trade. 

One can see, that San Francisco may unload within 
United States and therefore what is overproduction to 
San Francisco is not overproduction to United States. 
What is overproduction to United States is what United 
States has over after utilizing a ll she needs for con- 
struction. Much overproduction of the towns can be 
used up in building railroads, etc., outside the towns and 
within United States. 

10. ECONOMIC NATIONS OF THE WORLD; 

-« 

The economic nations of the world, I call those of 
Western Europe and also the Uuited States. The rest 
of the w r orld I do not consider economic. By the aid 
of machinery these economic nations can easily compete 
with the rest of the world, and can be, for explanation 
purposes grouped together. By so drawing a line be¬ 
tween the economic ‘nations, and the rest of the world, 


[ '2 ] 

and supposing them to practice saving money above 
that needed for home purposes, one can see just what 
show they have for unloading overproduction on the 
rest of the world. 

On the capacity therefore of the balance of the world 
for taking overproduction, depends the prosperity of 
the economic nations. If the latter can not unload out¬ 
side, then of course they will have overproduction on 
their hands. This is exactly what causes the hard times 
of to-day. 

The last boom of 1879-81, was caused by the eco¬ 
nomic people spending their savings on railroad, fac¬ 
tory, ship, and other construction. Not only the sav¬ 
ings of these years but the accumulated savings of sev¬ 
eral previous years were spent in above mentioned con¬ 
struction. This had the effect of using up saving money 
and merchandise, as fast as saved or produced. 

The moment this constructing slackened of course 
savings began to remain uninvested, while overproduc¬ 
tion appeared. The outlet for merchandise falling off 
in West Europe and United States, of course if the 
outsiders could not take the overproduction resulting 
from saving, depression must result from its laying on 
the hands of economic peoples. 

11. ON REMEDY. 

The only remedy I see that will do any good is for 
the people to cut down saving money. To do this the 
people must spend some of the money they now save 
in buying a finer quality of merchandise. I n other words 
the economic people must put on more style. 

Spending money on harlots or serfs pleasures will 


[i3] 

4 

not do. The money must be spent in buying a finer 
living. 

Of course if more railroads, etc. , are wanted more 
can be built, but right here comes in the question of 
style, for if nobody lives any better, no more work ex¬ 
cept that caused by increase of population will be de¬ 
manded. The railroads may gain a little by this increase 
but as 40,000 new workers come to the front with every 
increase of 100,000 population, the mass of the people 
will not gain. 

Increase of population I look on as a nuisance, if it 
brings 40,000 workers to every 15,000 new jobs. Then 
again improvements in machinery or effectiveness of 
railroads, will neutralize in many ways increase of pop¬ 
ulation. 

If money is not wanted for building new railroads or 
other capital property and the people do not see any 
sense in living in stone buildings, etc., then I can see 
no way to avoid the hard times of to-day. 

Working for others will not go, for others have more 
than they want. Outside the economic nations no one 
wants as much as we now can give them, while inside 
the economic nations there are few who want more. 
We can only work for ourselves or other people and 
the latter avenue is closed, or we would be able to ^et 
rid of'overproduction. So only by consuming more 
ourselves can we get rid of overproduction. This lat¬ 
ter can only be done by those who save buying a finer 
quality of shelter, food, etc.. 

Some will say there are many who want more in 
United. States then they now get, but capital robs them 
of the show. This is not true as regards the mass. 
Many want more but it is more harlot, whisky, betting, 


saving money, etc. Such wants do not make the wants 
I refer to, or wanting a finer grade of products. 

12. GOLD AND SILVER MINING AND 
OVERPRODUCTION. 

Gold and silver mining has in the past given, and 
will in the future give, an outlet for overproduction. 
This is due to the fact that gold and silver are money 
metals. For example: 

A country like Mexico, do her mines produce thir¬ 
ty millions of gold and silver yearly, can take this amount 
of overproduction from the economic peoples. With¬ 
out gold and silver mines Mexico could but exchange 
products. This would not enable Europe to unload 
overproduction. What Mexico can do all the other 
money mining people can do. So the economic world 
can unload overproduction to the extent of the mining 
output of bullion the world over. 

This outlet for overproduction has existed through 
centuries. For our present purpose however we can 
say it existed for us moderns since the discovery of 
America. Between the years 500 and 1500, the mining 
outlet must have had little influence in Europe, but 
since 1500 the pouring into Europe of a stream of money 

% 

metal has been large and continuous; enabling the towns 
to unload over production andno doubt greatly stimulat¬ 
ing economy or the saving of money. 

Common sense will tell one, that if the people of 
Europe and United States never have more overpro¬ 
duction then the bullion outlet can consume, that sav¬ 
ing money can go on without ajar. In this way money 
metal can enter circulation. Should the mining output 


fall off then any saving caused by mining must also fall 
off. 

13. AN ASIAN OUTLET FOR OVERPRO¬ 

DUCTION. 

Before a sea route to Asia was discovered, let one 
suppose that Asia had the best of trade with Europe, 
that is, took coin from Europe. Now if the finding of 
a sea way was followed by the Europeans taking coin 
from Asia, one can see that another outlet for overpro¬ 
duction was found. It is well known Asia had been 
accumulating - coin for centuries, which would have 
given the European a large accumulation to draw from^ 

This taking coin from Asia may have continued down 
to the year 1850, when the discovery of gold in Cal¬ 
ifornia and later in Australia, may have had the effect 
of increasing the coin supply of Asia, or at least put a 
stop to taking more from Asia. 

When the inflation following on gold discoveries had 
subsided, or been neutralized by machinery and other 
such improvements, then Europe and United States 
may have again begun to reduce the coin in Asia and 
have been doing so ever since. 

14. What I mean by Asia increasing her coin sup¬ 
ply after 1850, is that if prices rise in economic Europe 
and United States, that it will give more room for 
money circulating outside. For example, suppose prices 
went up in Europe twenty percent, during 1886. This 
would allow Mexico to circulate twenty per cent, more 
coin than she circulates to-day. So it would be all 
over the world. Africa, Asia, America, etc., could 
not help but gain coin and circulate it. 

Where will the outsiders get the coin, some will ask. 


By trade is one way; for raise the price ol sugar, coftee, 
etc., in Europe, and the producers of sugar, coffee, etc, 
will £et more coin. The same with Asian goods, are, 
the prices raised in Europe. There are other ways 
coin can cret into circulation outside the economic 

o 

world, and once outside the prices will determine 
whether it will come back or not. 

Do 3,000 millions of coin now circulated out¬ 
side economic Europe and the United States, then by 
raising prices 20 per cent, in Europe and United States 
room for 600 millions more outside will result. Instead 
of 3,000 millions 3,600 millions would circulate outside. 
The additional 600 millions would come from the 
hoards of money in Europe and United States. 

A fall in prices of 20 per cent, will enable Europe 
and United States to unload 600 millions overproduc¬ 
tion on the rest of the world, reducing the circulation 
from 3,000 millions to 2,400 millions. 

15. SURPLUS MONEY IN EUROPE AND 

UNITED STATES. 

Where much of the surplus money in Europe and 
United States can come from one can see. It was all in 
circulation some time previous to 1880, but was taken 
from circulation by fall in prices. 

The European capitalists can get more coin then to¬ 
day in their hands by dropping prices. As fast as 
prices drop overproduction can be unloaded on the out¬ 
side, and the coin taken to Europe and United States. 
For example, suppose Mexico to-day circulates fifty 
millions of coin, and will mine thirty millions more dur¬ 
ing 1886, a drop of 20 per cent, in prices will enable 
Europe to unload forty millions of overproduction on 


Mexico during 1886, thus taking the mining output 
and ten millions of the present circulating medium. 

As can be done with Mexico, can be done with the 
rest of the world. The capitalists of Europe can, 
therefore, find coin accumulating on their hands, the. 
lower prices fall. So will it be in the United States. 

16.—PAPER MONEY AND OVER¬ 
PRODUCTION. 

Does U. S. say, issue 500 millions of greenbacks,, 
spending in addition to the regular expenditure, the 
result would be as if 500 millions of gold were mined 
and circulated. The same result would follow the 
issuing of National Bank paper—or any paper money. 

Were 100,000 of gold taken from mines, minted into 
coin, and then used as security for 500,000 of bank pa¬ 
per, the floating of 500,000 of paper would act as if 
500,000 of new gold were circulated. It would swallow 
up 500,000 of overproduction. 

When a body of capitalists take U. S. bonds or gold, 
and issue paper on them, they can buy with the paper 
labor or labor product. Do they float 500,000 of pa¬ 
per they can buy land for 100,000 say, and erect a 
400,000 dollar building on the land, or they can build 
500,000 of railroad. In this way they gain what could 
be overproduction were it not utililized. 

Should the South American people adopt pa¬ 
per money, the governments could buy to the extent 
of the paper. Then, as the paper will allow Europe or 
U. S. to take away what coin circulates, another 
batch of overproduction could be got rid of. The 
United States could do the same. The government 
could issue 500 millions of paper and buy with it, say 


labor and material for warships, fortifications or army. 
This amount of paper would be apt to displace 500 
millions of coin, which could be given to Europe for 
overproduction. The result could be that 1,000 millions 
of overproduction may be gotten rid of. 

It will be seen Europe could gather all the coin 
in the world to itself did ousiders use paper ; also, while 
doing so, Europe could unload overproduction. The 
European economists could study the question from 
the European standpoint, and so find good proofs that 
if people save they can make money, \\ hile all this 
is going on, every European editor can be advising the 
people to save, economize, etc. But when Europe has 
gathered all the coin, one can see that the trouble will 
be to get the people to stop saving. 

This is a trouble to-day. So many have advised 
saving that millions of ignorant people believe in 
it, and from now on it will be’hard to get them to stop 
saving. 

17. BONDS, MORTGAGES, STOCKS, ETC. 

Are also means by which overproduction can be kept 
from showing itself. Of course the term overproduc¬ 
tion is not exactly correct, but the reader can see that I 
mean what would be overproduction were it not for 
its consumption by means of bonds, etc.. For exam¬ 
ple, suppose United States issued 100 millions of 
bonds and used the money received for building forti¬ 
fications within United States. The result would be 
that 100 millions of product would disappear. Had the 
government not done this then there could have been 
100 millions of coin lying idle, and 100 millions of 
overproduction oppressing trade. 


[ 19 ] 

The same rule holds good for preceding article, 
and in fact all I write on in this line. If an outlet exist 
there will be no overproduction and when I say outlets 
for overproduction, I mean what would be overpro¬ 
duction were there no outlets. 

When the United States issued 2,000 millions of 
bonds during the civil war, it gave an investment for 
a large amount of savings. The government used up 
the overproduction on the war, the saver got the bonds. 
Here we see that as much overproduction found an 
outlet by reason of bonds, as found an outlet by reason of 
the gold output of California since 1849. 

Railroad or corporation bonds of any kind act the same 
as government bonds. A railroad company say, spend 
twenty millions in gold on building a railroad, and issue 
fifty millions of bonds, stocks, etc., which they sell say 
for forty millions in gold. Here are twenty millions 
of honest dollars made. The forty millions of gold can 
be used to make another turn netting the builders say 
seventy-five millions clear gold. The reader can trace 
sixty millions of labor or material, put into railroad 
building in above supposition. Do the builders make 
another turn and spend seventy-five millions more in 
railroad building, one can see 135 millions of what 
could be overproduction consumed. In this way bonds 
and stocks allow the use of property built, for the pur¬ 
pose of getting more coin. 

Mortgages act the same. A man can spend 100,000 
on a building, mortgage it for another 100,000 (is the 
lot valuable) and build again. The mortgage there¬ 
fore does for the private builder, what the bond does 
for corporations and governments. 

This and last article show how the results of saving 


[ 20 ] 

are disposed of within a nation. Outside the same can 
take place as I will explain. 

18. FOREIGN INVESTMENTS AND OVER¬ 
PRODUCTION. 

Should European capitalists invest 500 millions in 
China between 1886—90, than European traders can 
unload 500 millions of overproduction on China and 
get the money back. Perhaps no more than fifty mil¬ 
lions of coin will be needed, for as fast as it is given to 
Chinese it comes back again for merchandise, and can 
be used again for investment. 

c> 

The same was the result of the investments made in 
Mexico about 1880. The United States people put 
their coin into Mexican roads, and as fast as it was 
spent in Mexico, it began to go out. Europe dumped 
in overproduction and the coin went to Europe. 

West Europe in the past invested millions in such 
countries as Peru, Turkey, Egypt, etc. In fact the 
whole world outside West Europe was loaned money, 
so long as it had the security. In this way Peru got 
monev so long as her nitrate or guano beds and other 
property were fit to advance money on. After Peru 
had no more security to offer, no more money was 
loaned her. 

All the money so invested went into circulation and 
returned to the investors through trade channels. Did 
a South American state discover good mines, etc., the 
European capitalists could buy the property, build rail¬ 
roads to it, and develop it in every way. As fast as 
they spent the money in South America European 
traders could unload overproduction and bring it back 
to Europe. When all was over Europeans would 


[ 21 ] 

own the property, and the coin that bought and devel¬ 
oped it. All the South American people get will be 
good times while the money is being spent. 

The United States people have been treated like a 
nation of Peruvian Indians in the past, if they are not 
still being so treated. The European capitalists buy 
up fine property in United States and then their trad¬ 
ers unload overproduction on United States, taking the 
coin away. This they did in the past, but whether 
it is safe to-day I believe not. The reason it is not 
so successful to-day is because the United States has 
developed into one of the economical kind. 

One can now see what a fine field there has been in 
the past for West Europe. That West Europe im¬ 
proved her chances one can see by looking at what she 
had done. Mexico is a nice example as one can see 
from the fact that she has borrowed all she can, All 
this investing has given an outlet for overproduction. 
People saved in Europe and so had millions of coin 
and merchandise over. They invested the coin out¬ 
side, and then sent overproduction after it in order 
to get the coin back. They did this until they held 
a mortgage on all outside worth having, excepting per¬ 
haps property in China and a few other places. 

19. ENGLISH WAR SUBSIDIES AND 
OVERPRODUCTION. 

Suppose Turkey should go to war as England’s ally, 
and the English government to give Turkey a war sub¬ 
sidy of fifty millions. The Turk would spend the coin 
on war material say from England, in which case it 
would be as if England furnished the Turkish soldiers 
with war outfit. If any coin was spent in Turkey the 


chances are the English trader would get it in return 
for overproduction. The English people would save 
and give to the government the savings for bonds. 
The English government could give the coin to Tur¬ 
key, which leaves the English people the show to get 
it back again. In this way the same coin could be used 
over and over. 

During the Napoleonic wars England gave many 
millions to allies on the Continent. This money she 
got back with overproduction. When England gave 
Prussia say millions of money, the chances are it went 
back to English people for war material. The English 
worked and saved, the allies did the fighting. When 
the Napoleonic wars ended, of course this outlet for 
overproduction ended. Had the English got into the 
habit of saving so much each year, of course did they 
try to continue such saving after the wars ended, it 
would cause hard times. 


COMPETITION. 


CHAPTER III. 

v i • 

20. MONEY THROWN FROM CIRCULA¬ 
TION. 

The direct result, when competition causes a cut in 
prices and wage, is to throw money from trade circula¬ 
tion. For example, if in United States to-day ( 1886) 
there are 600 millions used for trade circulation, a cut 
in prices of merchandise of ten per cent, during 1886 
will throw from circulation 120 millions of money. The 
remainder, 480 millions, plus a little for increase of pop- 




[ 23 ] 

ulation, would be all the money needed for trade at the 
beginning of 1887. 

The throwing of money from trade circulation does 
not mean that it shall leave the country, for it can lay 
in banks. Money is used for capital purposes, specu¬ 
lating, etc., as well as trade, and so a cut in wage can 
be followed by more money for capital, etc.. 

21. COMPETITION BETWEEN NATIONS. 

) 9 • 

Does England cut prices and wage it not only will 
result in piling up money in English banks, but it will 
allow them to undersell other nations. This will force 
the other economic nations to cut wage and prices, or 
raise protective tariffs. Does it cause the others to 
reduce prices, then all over the economic world money 
will be thrown from circulation. Do the economic na¬ 
tions circulate 3,000 millions a cut of twenty per cent, 
by one nation can cause 600 millions to be thrown out 
of trade circulation, is tariff not raised. 

One can now see why, if money is thrown from cir¬ 
culation in United States by cut in prices, that it need 
not leave United States, for the other nations can have 
plenty idle money also. Again it need not be England 
that cuts first, but any of the large economic 
countries can do so, and force the rest to cut, raise tar¬ 
iffs, or find their home market a dumping ground for 
overproduction. 

Outside the economic nations, do 3,000 millions 
of coin circulate to-day, a cut of twenty per cent, in 
prices will allow of the economic nations unloading 
600 millions of overproduction on the outside. So the 
banks of economic nations could find their stock of 


money increased by about 1,200 millions, of which 
600 millions coin come from outside. 

To understand the situation thoroughly suppose that 
between 1886-90 prices fall twenty per cent., also that 
6,000 millions coin circulate through the world’s trade 
channels to-day. The first result, say, is 1,200 millions 
of coin thrown from circulation. Next four years min¬ 
ing output or 800 millions is added to the 1,200. In 
all 2,000 millions, from which must be deducted for in¬ 
crease of population and loss by wear and tear, say 
500 millions, making 1,500 millions more idle money 
in the year 1890 than is idle to-day. 

Looking back to 1880, let one suppose that 8,000 
millions then circulated, and that fall in prices, have since 
thrown 2,000 millions from circulation. To this the 
mining output added say 1,000 millions. After deduct¬ 
ing for increase of population, etc., one can see that 
there may be 2,500 millions more idle coin in 1886 
then there was in 1880. This can account for the 
large amount of coin seeking investment in Europe 
and United States. If to this is added more from now 
on, the reader can see plainly the tendency of competi¬ 
tion from now on, which will be to add to the 2,500 
now out of circulation. 

22. WAGES, INTEREST, RENT, ETC. 

It is noticed that when wages fall so do interest, 
rents, etc. This is due to the taking of coin from cir¬ 
culation. As coin is taken from trade circulation by 
the fall in prices, it piles up in banks or hoard. As it 
cannot be used in trade (meaning merchandise trade), 
it can only be used in buying and selling real estate, 
stocks, bonds, and other capital values or property 


This results in reducing interest, besides leaving always 
plenty of money idle in banks. 

The taking of coin from circulation will cause a fall 
in incomes of all kinds, while the competition resulting 
from too much idle money can cause capital values to 
go up, which is equivalent to another fall in interest. 
For example, say a railroad is paying 6 per cent, divi¬ 
dends when wages and prices are reduced one-third. 
This would cause the dividend to fall to 4 per cent. 
Now do we suppose that when the dividend was 6 per 
cent, that the stock sold at $100, one need not expect 
that it would sell for less value when the dividend fell 
to 4 per cent'., because the money drawn from circula¬ 
tion by fall in prices will not only keep it at $100, but 
may send it much above 100. Does it send the stock 
up above 100, then idle money assists in reducing in¬ 
terest. Therefore, one can see that interest can fall 
from two causes. 

One harm capital does to itself by reducing wage 
can now be seen. It causes coin to be taken from cir- 
lation and be used to reduce interest, besides causing 
interest to fall by reducing incomes. 

23. MORE WORKMEN NOT WANTED. 

Some capitalists may suppose that with lower wages 
more workers can be employed. This is not so, as the 
tastes of a people set the demand and consequently the 
number of workmen required. Unless the people of 
West Europe and the United States live in better style 
no more work will be demanded. Not only no more 
work but no more capital. For example take San 
Francisco. If the people never average a better living, 
then no more workmen per each 100 of people will be 


needed. As with San Francisco so with every town in 
the world. Neither will more capital be needed for 
each ioo people. 

Increase of population may give more work, but im¬ 
provements in machinery can do much to neutralize 
such increase. 

A foreign outlet for labor product cannot be thought 
of in these days of economy and competition. The 
amount of overproduction that can be unloaded outside 
the economic nations is limited to the mining output, 
amount of money invested in other countries, etc. 

All that capital can do, does it try to circulate idle 
money, is to raise wages, etc. This is why wages 
go up as soon as a boom begins. The number of work¬ 
ers being set, more money circulated sends up wages. 

24. REAL ESTATE AND IDLE MONEY. 

When prices and wages are falling and money being 
piled in banks, it is natural that real estate values 
should go up as high as possible. Instead, therefore, 
of such advance in real estate meaning any good for 
trade it means the reverse. 

Rents fall with prices, yet as interest also falls, one 
can see that real estate values can remain firm. (See 
Art. 22.) 

With government bonds or any sure investment it 
is the same as real estate. When money begins to ac¬ 
cumulate in banks all such investments can go up. 

25. COMPETITION FROM 1886 ON. 

♦ Are my views right, then every cut in prices from 
now on will simply add to the idle money in banks. 
As money piles up, incomes, rents, wages, profits, etc.. 


[ 27 ] 

all will go down. No escape from this result is possi¬ 
ble. The only real benefit can be found by raising 
wages, prices, etc., and then leaving them remain up. 
To do this however is fatal to competition or economy. 

Each cut in prices may result in increased sales, as 
it allows overproduction to be unloaded. As unload¬ 
ing overproduction is the cause of competition, one can 
see that cutting prices is really in the interest of com¬ 
petition by increasing the outlet for overproduction. 

So long as English people save money so long can 
they have overproduction. This overproduction they 
will try to unload outside, and in order to unload will 
cut prices. If England does not get rid of the over¬ 
production it will cause hard times at home and so bring 
on lower prices. Not only must England try to un¬ 
load overproduction, but she must try and keep Ger¬ 
many and others from unloading on the English mar¬ 
ket. The only way to do this is to cut prices. 

So long as England alone indulged in the luxury ol 
unloading overproduction on others, all was very fine, 
but from now on there will be several nations in the 
business and so spoil the business. Only the other day 
I saw a statement as to German and English trade in 
Asia, which said England was trying to neutralize Ger¬ 
man competition through Paris. All such things show 
how intense is to be the competition of the future. It 
all comes from too many nations trying to unload over¬ 
production. Without overproduction to bother trade 
it would be impossible to compete. There can be no 
competition unless there is savings and consequent 
overproduction. 


PROTECTION. 


CHAPTER IV. 

26. SPIRIT AND FREE TRADE. 

A pistol is neither right nor wrong, but one can use 
it in a right or wrong spirit. The same can be said of 
the sword, machinery, free trade, protection, etc. 
When free trade advocates argue that free trade is right, 
it does not mean any more than arguing that pistols, 
etc., are right. The real determining point is, taking 
England as the champion of free trade, whether Eng¬ 
land uses free trade in a right spirit or not. If Eng¬ 
land uses free trade to get the better of others, then free 
trade is wrong in the English sense of the word. 

27. ONE REASON FOR PROTECTION. 

One reason why the United States has to pro¬ 
tect itself is because of Europe unloading overproduc¬ 
tion on us. If Europe wanted to exchange, Europe 
could not hurt United States, but wanting more than 
exchange, makes protection a right action in defense. 
United States has the right to save itself from having 
overproduction dumped on it and coin taken away. 

With free trade for United States England could 
dump say 200 millions of industrial overproduction on 
United States each year. This would be in addition 
to that given to United States in exchange for wheat, 
etc. With the 200 millions coin received for overpro¬ 
duction England could buy up 200 millions of property 
in United States, and so in the course of twenty years, 



[ 29 ] 

say, United States would find that 4,000 millions of 
the best property in the country would be owned by 
England. 

This is treating United States like a Peru, a Turkey, 
Egypt or any other semi-civilized nation. If one calls 
this trading in a fair spirit, then one can call free trade 
right. If not, then free trade is wrong. 

28. As regards hurting industries, the Protectionists 
are right in saying free trade does so hurt. With fair 
exchange no hurt would follow, for Europe could ex¬ 
change products with United States farmers and 
industrial people. The industrial class of United 
States would not be hurt say, by exchanging 500 mil¬ 
lions of their products for 500 millions of European in¬ 
dustrial products. Again, did Europe exchange 500 
millions of products for 500 million United States farm 
products all would be fair. 

But did Europe, after exchanging with the farmers, 
try to sell more industrial products in United States 
than she bought from United States, then the United 
States industrial class would suffer. This is just what 
Europe tries to do and can do under free trade. 

In Europe it is the same. England can dump over¬ 
production on France, Germany, etc., and tries to do 
so, which calls for protection for France, etc. Also 
P'rance, etc., can find it necessary to protect against 
United States farm overproduction. In all cases it is 
protection against overproduction and not against ex¬ 
change trade, for it is impossible to take money from a 
country by exchange. One must sell more than buy 
in order to make money, and nations are like indi¬ 
viduals. 


I 


[ 30 ] 

29. REMARKS. 

While protection can allow a people to make their 
own industrial work, the size of the industrial class will 
depend on the tastes of the people. Are a people poor 
whites, the number of factories and workmen will be 
only enough to supply what poor whites need. 

Again, protection, while it protects United States 
from Europe and allows us to build our shanties, also 
makes our cheap clothes, etc., undisturbed, does not 
protect one state from another. The ten North At¬ 
lantic states have been for decades treating the South 
and West as if the latter were Peru’s. They save money 
and unload overproduction on the South and West. 
They are to-day unloading on California and causing 
harder times in the latter state. 

Did the North Atlantic people invest 200 millions 
during 1886 building railroads, etc., in the South and 
West, they might unload 200 millions of overproduc¬ 
tion on the South and West and so get the money back. 
In this way in ten years they could owe 2,000 millions 
of property in the South and West bought with over¬ 
production. This is a better way to get rid of over¬ 
production, than refuse to invest and leave the coin 
lie idle. 

Protection tariffs will not protect one from one’s own 
economy. It is said the German tariff is a failure. 
This can not be. The tariffkeeps England and others 
from dumping in overproduction, but it does not keep 
the towns within Germany from dumping overproduc¬ 
tion on each other. What overproduction Germany 
suffers from is its own, not other peoples. The same 
result is seen in United States. 

If California had the power to protect, it could pro- 


tect against the Yankee as well as foreigners. But 
California can not protect the people from their own 
economy. If the people of California will produce more 
than they consume, then they will have overproduction 
and nothing can protect against this. San Francisco 
by protection can not protect itself against its own 
economy. 

30. HOW FREE TRADE COULD HELP. 

If free trade could give United States people a taste 
for solid reading, fine sculpture, music, etc., besides 
making them dissatisfied with cheap shanties, roads, 
bridges, etc., again making them want finer food, clothes, 
etc.; while killing the desire for rotgut whisky, sloggars, 
harlots, gambling, etc.; then free trade could help 
United States. 

But as it is, no more factories, workmen, etc., are 
wanted, and as free trade can not cause a greater de¬ 
mand for capital or labor, it can not create more work. 
So long as United States people enjoy their present 
style of living and see no sense in living in stone houses, 
building expensive roads, bridges, etc., free trade will 
not help, but will hurt by crushing the little industrial 
work United States now has. 

31. A MONEY VIEW. , 

Protection allows a nation to circulate more coin 
than it could under free trade. If U. S. adopted free 
trade or reduces her tariff the result will be that less 
money will circulate in U. S. If out of 1,500 millions 
of money in United States to-day 600 are used for 
merchandise trade, should free trade cause a drop of 
forty per cent, in prices, then 240 millions will be 



[ 32 ] 

thrown from circulation, leaving but 360 out of 1,500 
millions in United States in circulation. 

United States gold bugs, who are also free traders, 
can here see what they are trying to do. Free trade 
can throw more money from circulation than the silver 
in the United States amounts to. So to demonetize 
silver and adopt free trade at the same time will cause 
opposite effects, or what the gold bugs gain by one 
will be neutralized by the other. Also, throwing of 
money from circulation will reduce interest, which again 
will hurt gold bugs and free traders. 

Reduce the value of all merchandise sold in United 
States by forty per cent., and freights will come down 
forty per cent. A greater bulk will not be handled for 
the style of the people sets the limit to bulk. If 
freights are not lowered it will destroy the power of 
the Atlantic States selling out West. So in order to 
allow the manufactures, etc., in the East to sell out 
West, the railroads must lower freights with fall of 
prices. If not, the West will be protected by high 
freights and can do its own producing. 

If railroads drew their earnings from the trade in real 
estate, stocks, bonds, etc., they need not fear a reduc¬ 
tion in trade prices. But as they draw their income 
from merchandise trade, a fall in prices means a fall in 
freights and earnings of all kinds. United States 
railroads earn a large interest in many cases, because 
the tariff allows ot a high price being paid for freight. 
Let the tariff be wiped out and lower interest must re¬ 
sult as prices are almost sure to fall. 

Not only freights but passenger fares must come 
down, for 95 out of each 100 incomes depend on the 
same foundation, the railroad incomes do and people 


with reduced incomes can not pay the fares of to-day. 

If piling up money in banks, reducing rents, inter¬ 
est, prices, freights, etc., will not hurt capitalists, then 
free trade is all right. If they do, then it is all wrong. 
Capitalists will find that United States is not the same 
country with prices forty per cent, or perhaps one hun¬ 
dred per cent, lower. 


SILVER QUESTION. 


CHAPTER V. 

32. THE ASIAN OUTLET FOR SILVER. 

Lately I saw it stated that if European capitalists 
could succeed in loaning China 200 millions of coin, 
that it would enable Germany to get rid of her surplus 
silver, while making a market for United States silver. 

This view is based on the idea that Chinese con¬ 
sume silver as if it were rice, or in some way get rid 
of it, which, as I see, is a wrong idea. If the Chinese 
got 200 millions of silver, it would go into circulation 
in China, and could be taken from circulation by 
unloading overproduction on China. For this reason 
I do not believe China could keep 200 millions of sil¬ 
ver any easier than Mexico can. 

I believe Europe could lend China 50 milllions of 
silver in 1886, and were it circulated at once in China, 
I believe it would be all back in Europe by 1888 if 
not before. Not only this, but that does China to-day 
circulate 500 millions, a drop in prices say of 20 per 
cent, will allow Europe to reduce the 500 millions to 
400 millions. 

So if China has in 1886 500 millions of silver, and 




[ 34 ] 


200 million is loaned her in 1886, then with a drop in 
prices of 20 per cent., Europe and United States would 
find that by 1890, that instead of getting rid of silver 
they would have more silver on their hands than ever. 
The same rule hold goods for all silver using nations. 

This talk, therefore, of silver being absorbed by 
Asia, one can see, I look on as nonsense. If Bismarck 
wants to get rid of silver, German traders should not 
unload overproduction on silver nations and bring sil¬ 
ver into Germany. England should do the same.. 
But so long as European traders keep unloading over¬ 
production on Asia for silver, then so long will silver 
be found in quantity in Europe. 

33. One result of reducing the value of silver can 
be that it may hurt the power of economic nations as 
regards their power to take overproduction. Has Eng¬ 
land, say, been in the habit of unloading 100 millions . 
of overproduction yearly on silver nations, then let the 
value of silver fall one-third, and it is equivalent to re¬ 
ducing the outlet for overproduction one-third. Tak¬ 
ing the world as a whole, the rise in the value of gold 
may neutralize the fall in silver can the rise in gold be 
maintained. If not, then cheapening of silver can re¬ 
duce the power of mining to take overproduction. 

34. SILVER AND TRADE. 

France can sell England 50 millions of product 
yearly, taking silver therefor, which silver France can 
use to buy 50 millions of goods from British India. 
England can get the 50 millions back again by selling 
to India. In this way 50 millions circulate among 
three nations. It is as good for France as if she soldi 
to India direct. 


[ 35 ] 

In this way the United States can buy from South 
America or Asia. United States can sell Eno-land 

o 

wheat for silver and buy in silver using nations. 

Here again one sees how overproduction can hurt. 
England can get both silver and goods from India, 
and so if France and United States take silver, Ene- 
land loses the chance to sell India eoods. Does Eno-- 
land give silver for wheat, etc., then she can not give 
merchandise. By using silver England hurts her ex¬ 
change trade in goods bought in Asia, Africa, etc. So 
the silver or coin received by overproduction can hurt 
England as a commercial nation. 

Did Europe and United States demonetize silver and 
still unload overproduction on the rest of the world, 
then they must take silver for the overproduction. This 
would always give a large stock of silver in Europe 
and United States. This silver would be used to buy 
in the silver world, leaving within the eold world laree 
amounts of unsalable Asian and other eoods. This is 
what hurts England to-day, it being that France and 

others can take silver instead of Asian, etc., goods. 
England can not to-day dispose of the imports of sil¬ 
ver and the imports of other goods. Were there no 
imports of silver, then England could get rid of Asian 
and other goods in return for French, German, United 
States, etc., products. 

The financiers act against trade when they try to do 
away with silver. So long as an English trader can 
sell outside for silver he is going to do so, and he will 
bring the silver to England. This silver he can use 
to buy French or other goods, and these latter nations 
can use it to buy in silver using countries. So in spite 


of all financiers can do, silver can come to Europe, or 
be used in trade. 

The only way to keep silver out of Europe and 
United States will be to send it to Asia, South Ameri¬ 
ca, etc., and refuse to sell overproduction for it. Also 
leave the silver output of such countries as Mexico 
remain in Mexico, adding to it some of the silver out¬ 
put of Europe and United States. By doing this 
Europe and United States will not be bothered with 
silver. All this means carry on only a merchandise 
trade with silver nations. Of course it will also mean 
more overproduction laying on the hands of economic 
people, causing harder times, etc.. 

Financiers are cranky. Were I a trader I could sell 
wheat in England, take silver and buy from traders in 
Germany in spite of German gold laws, or anywhere 
else. What does a genuine trader care what finan¬ 
ciers fool over. The only ones who are hurt are the 
peddlers who do not trade. But the gigantic trading 
houses of the world can use silver even if gold is used 
for local circulation. Let this silver agitation keep on 
and a crop of traders will grow up equal to the 
occasion. The whole world must demonetize silver or 
it can be used by traders who know their business. 

35. WHY SILVER IS CHEAP. 

Do 3,000 millions circulate outside Western Eu¬ 
rope and United States to-day, then 4,000 millions 
may have circulated outside in 1880. The fall in prices 
since 1880 has allowed the economic natioas to unload 
overproduction and take 1,000 millions of silver from 
the outsiders. 

To this 1,000 millions must be added the silver mine 


[ 37 ] 

output since 1880, besides all the surplus silver held in 
Europe from before 1880. In all, perhaps, there are 
near 2,000 millions of silver idle in the world, and where 
European and United States people can control it. 
Again, do prices fall from 1886 on, then no more silver 
will go into circulation, but more be taken from cir¬ 
culation. Also the mining output will be on the world’s 
hands. 

It will now be seen why United States, coining 24 
millions a year, does not raise prices. It does not take 
much of a drop to throw 24 millions from circulation 
in Asia, etc., besides with prices falling, no new silver 
goes into circulation. This, with the fact that Europe 
favors gold, makes silver cheap. So long as there is 
plenty of idle silver in the world it can be cheap. No 
more silver going into circulation, but some always go¬ 
ing out, leaves the entire silver output of the world un¬ 
used. United States could coin equal to silver 
mine output yearly, and yet falling prices will add to 
the idle silver in the world. 

Did prices go up, then the silver using world would 
need more coin for circulation, but prices are not likely 
to go up under the competition of to-day. At least to 
such an extent as will absorb permanently the idle sil¬ 
ver. 

36. REMARKS ON SILVER. 

If Europe and United States demonetize silver, from 
reasons Oven, this will not drive silver from trade. All 

o 

the trade with the silver world will yet go on. Eng¬ 
lish, German and other traders will still dump overpro- 
tion on the silver world taking silver, and this silver 
can be used by traders. For example : Did one sell a 


**»■ 


[ 38 ] 

cargo in Europe, and then want to buy from silver na¬ 
tions, one would take silver. One may be able to buy 
Asian, etc., goods in Europe, but if it paid to take sil¬ 
ver and buy in Asia, etc., oneself, then one would take 
silver. In trade silver is all right. Gold is needed to 
speculate in stocks, bonds, etc., but silver will do for 
trade, so financiers need not be noticed so much. 

If United States adopts the silver standard Europe 
can have all the gold. But Europe will have no use 
for it. To-day Europe cannot circulate what gold she 
has got, so the addition of more gold may result in 
cheapening gold. Speculators may be able to use 
more gold, but trade cannot, and if Europe had to take 
the United States gold, the chances are that gold 
would cheapen. Therefore, I can see no harm in the 
United States adopting the silver standard, for the 
same causes that cheapen silver can cheapen gold. 

The chief trouble is that the prices of merchandise 
are too low for the gold and silver coin in the world. 
Do what the financiers will they cannot find use for all 
the coin. 

I do not believe United States adopting the silver 
standard will make silver dearer, because more will be 
used, for at the most United States may not use one- 
third of the idle silver to-day at European command. 
More silver can be taken from Asia, etc., by dropping 
prices of merchandise io per cent, than United States 
can use. Still I am in favor of United States adopting 
the silver standard. 

Let prices of merchandise fall from 1886 omandgold 
will be thrown from circulation as well as silver. Even 
to-day more gold may be idle than silver. All Europe 
is full of idle gold, so are the banks of United States. 


[ 39 ] 

A cut in prices will add to this surplus gold. So the 
same causes work on both metals. 

The only way to put gold in circulation is to raise 
prices. This will also put silver into circulation in the 
silver nations. If silver is in more demand than 
gold (as it may be if United States is a silver nation), 
then, of course, silver will get dearer. 

It has been proposed to float silver certificates on 
bullion deposited nn the Treasury. This will not help 
gold bugs, for the certificates will displace gold or gold 
paper. If, at present prices, only 600 millions are 
wanted by trade, then if 600 millions of silver certifi¬ 
cates are used, no gold, national paper, etc., can be 
circulated, but must lie idle in banks and being used 
only for real estate, stock, bond, etc., dealing. Also, it 

will be so plenty as to bring interest down to almost 

« 

nothing. 

As regards the idea that United States can coin un¬ 
limited silver and this silver be used in trade, that it 
will not drive gold from the country, I say this, that if 
it does not drive eold from the country it will drive it 
from trade circulation. The gold can lay in banks or 
hoard, for if 600 millions of money is all that is needed 
for trade, then with 600 millions of silver and an equal 
amount of other money, one or the other must be idle. 
Half of each can lie idle, but no more than 600 mil¬ 
lions can be used. 

If more than 600 millions is tried to be circulated 
the chances are that prices will go up, and Europe will 
unload overproduction on United States. So the tariff 
must be run up if more than 600 millions of money is 
wanted in circulation. Only so much money can be 
used at present prices, and if United States has more, 


then the surplus cannot be used and kept in the coun¬ 
try without raising the tariff. 

As regards whether money in circulation depends 
on population or business done, I will say that the farm 
class uses no money of its own. The town class, es¬ 
pecially the factor and trader class, use the money. 
If the farm class should double in numbers in the 
United States, and the town class remain stationary, 
then United States would not need piore money than 
she needs to-day. Using Russia to explain, I can say, 
that if the town class of Russia doubles, then Russia 
would need twice as much money to sustain prices. 
But does the town class shrink then Russia needs not 
as much money as to-day. The farm class does not 
count, for when two* persons are trading only one needs 
money to assist in the exchanging, It is not necessary 
for both to have money, only one side. The trade be¬ 
tween farmers and townsmen is the same, only one side 
needing money, which actually takes place in the 
United States to-day. (These remarks refer entirely 
to money in circulation and not to idle money.) There¬ 
fore increase of population has nothing to do with more 
money being needed, unless the town class increases 
also. Again, with a stationary population and increas¬ 
ing town population, more money will be needed. So, 
without increase of population, a country may yet need 

more money to sustain prices. 

» 

CHINESE. 

CHAPTER VI. 

37. LOW WAGES. 

In order to have low wages the upper class in a coun- 




try should keep as little money as possible within their 
country. If Californians say, want low wages, then 
they should not circulate much money. Does the up¬ 
per class wish to have wages at $1.00 per day, then they 
should not circulate much over $10 per capita. All 
above this should be kept out of the State. 

The wheat, fruit, wine, etc., producers ; also the 
manufacturers of California, can have low wapfes in the 
State by simply refusing to bring in money from the 
outside and circulating it in the State. If, however, 
they keep bringing coin into the State wag;es cannot 
remain low. 

38. CHINESE AND LOW WAGES. 

The upper class of California in the past have made 
a practice of putting money made outside the State, 
also that taken from mines, into circulation within the 
State. This caused wages to go up, and, in order to 
reduce the wages, the upper class hired Chinese. The 
Chinese reduced wages by sending the coin to China 
as fast as it was brought into the State. 

The English sell a great deal of overproduction, and 
did they act like Yankees, bringing home the coin re¬ 
ceived from overproduction it would inflate wage. 
Then did they hire Chinese to send the coin out of 
England as fast as it came in, so keeping the volume 
of circulating medium always the same, one can see 
that the brinoflnof into England of coin would not raise 

C> o o 

wages. This is what Chinese are used for in Califor¬ 
nia. 

Any one can see how idiotic the upper classs of Cali¬ 
fornia have acted. They did not know how to act with 
overproduction money, so brought it home to use it for 


[ 42 ] 

gambling in stocks, real estate, etc. They brought it 
into the State instead of buying outside with it. This, 
of course, raised wages, so to neutralize the natural re¬ 
sults of their ignorance they brought in Chinese and 
gave the coin to them. 

During 1886 California may export 30 millions more 
than she imports, which means that she unloads 30 
millions overproduction. Without Chinese, if the coin 
received for overproduction was brought into the State 
and circulated, it would cause wages to go up so high 
as to destroy California’s power to unload. With Chi¬ 
nese no such a result can happen, as the Chinese will 
send 30 millions to China, if necessary, and so keep 
wages down. 

39. REMARKS. 

Had the English upper class done as the California 
upper class has done, one can see that England would 
not own as much property outside to-day. It is because 
the English have invested their overproduction coin 
outside England, buying up property, bonds, etc., or 
building railroads, opening mines, etc., all over the 
world, that they have gained by economy. The Eng¬ 
lish are not local minded like Yankees, but look outside 
England once in a v/hile, which is to their gain. 

The Yankee method of bringing home coin made 
outside, means to lose the profits of overproduction. 
Last year United States made 165 millions by over¬ 
production. If 165 millions of United States securities 
now held by Europeans are bought, then United States 
gains, but are 165 millions of coin brought into the 
country there will be no gain. Of course it can be 
used every time to buy outside if it is not circulated, 


[ 43 ] 

but if circulated it will inflate prices and the Europeans 
will unload on the United States, so getting it back. 
So one can see that the proper way is to use it outside 
and never circulate it within United States. 

Had California no Chinese and could sell thirty mil¬ 
lions overproduction during 1886 one can see that thir¬ 
ty millions of steamships, railroads, mines, etc., could 
be bought outside the state, and owned by Californians. 
If this could be kept up until the year 1900, then Cal¬ 
ifornia people would own 450 millions of outside pro¬ 
perty, which they will not own are Chinese given the 
450 millions. 

San Francisco is like the state and can she unload an 
average of fifteen millions each year, can buy 225 mil¬ 
lions of steamships, etc., by the year 1900. By bring¬ 
ing the coin home and giving it to Chinese San Fran- 
cisco will not make by selling overproduction, but the 
cream of economy will be given to Chinese. 

40. MEXICO AND CHINESE. 

It is said Mexico wants Chinese. If Mexico wants 
them Mexico must furnish coin to pay them and this 
coin the chances are will come from outside. The 
mining output of Mexico is already used in certain 
trade channels and so will not be able to be used to 
pay Chinese, in which case Mexico must get coin by 
unloading outside. It would be a pretty sight if in the 
near future Mexico would be found to be treating United 
States as the Sandwich islanders do to-day, that is us¬ 
ing our country as a dumping ground for Chinese over¬ 
production so as to get coin for Chinese to send to China. 

The Sandwich Islands unload on the United States 
for coin, which coin goes to China and Europe. What 


goes to China can come into the English people’s hands 
in return for cottons, opium, etc., and be used to buy 
wheat, etc., from United States. The same could be 
done with money going to China through Mexico. 
Whether such a circulation of money would hurt the 
United States or not, I leave the reader to judge. 

41. The way the Chinese get their work in on San 
Francisco is by selling on the San Francisco market, and 
taking coin from circulation. This forces the whites to 
sell outside for coin in order to replace that taken 
by Chinese. This is exactly the position England is 
in, do the French, Germans, ete., unload on the Eng¬ 
lish market, taking away coin from inside England as 
fast as the English bring it in. 

The whites in San Francisco make quartz mills, etc., 
and sell them outside for coin, which coin they give to 
Chinese for boots, cigars, etc., also for services as 
cooks, servants, laundry work, etc. The millions 
made by selling in mining camps goes to Chinese for 
boots, etc. As I see it, there is no sense in this sell¬ 
ing quartz mills, etc., for coin to buy Chinese boots, etc. 
Why not make the boots, etc., ourselves, and not be run¬ 
ning all over the coast trying to sell quartz mills ? I f the 
only object in selling outside is to get coin for boots, etc., 
the whites had better give quartz mill making up. It 
may sound better to say that San Francisco sells outside, 
but it is not sense. The English may sell outside, but 
they first secure their home market. Without the 
home market within their grip the English would not 
make by selling outside. 

Again, this depending on outside sales for our boots, 
etc., make us liable to be hurt by Eastern competition. 


Suppose San Francisco depended on Nevada for five 
millions each year, in order to buy of Chinese, and 
Easterners came into Nevada cutting down this five to 
three millions, would not San Francisco be hurt ? The 
same do we depend on the Sacramento or San Joaquin 
farmers for coin to pay Chinese. Our trade can be 
spoiled outside, and therefore we should depend on the 
outside trade as little as possible. 

No people can stand this unloading on the home 
market and prosper. The English are hurt to-day by 
it. So long as England had the power to unload on 
others and hold her own home market, free trade, 
economy, etc,, were splendid things. But to-day Eng¬ 
land, as a dumping ground for United States, France, 
Germany, etc., rather knocks the beauty out of free 
trade and economy. Unless England can keep herself 
from being made a dumping ground it will not be long 
before her wealth will disappear. Englishmen may 
owe United States securities gained by dumping on 
United States in the past, which United States by 
dumping on England can now win back. The same 
can be done by France, Germany, etc. So in a short 
time the English can lose much that they have gained 
in the past. All this should be a warning to San Fran¬ 
cisco people. 

42. CALIFORNIA WITHOUT CHINESE. 

The Chinese to-day get equal to all the outside work. 
Does the State sell 30 millions more than she buys 
during 1886, tbe chances are that the Chinese will get 
equal to 30 millions of work. Did California have no 
Chinese and carried on a balanced trade with the world, 
besides not having a gold or silver mine in or near it, 


/ 


[ 46 ] 

the white workers would get as much work as to-day. 
They would have all the work their taste creates, which 
is all they have to-day. 

The Chinese really do not rob the whites of any of 
their own work, that is, work caused by white con¬ 
sumption in California. It is true the Chinese make 
shoes, etc., for white people in the State, yet if they did 
not the whites could not make quartz mills, etc., while 
acting- as thev do to-dav. All the Chinese do is to 
do work enough so as to take away the coin received 
bv sales of overproduction to mining camps or out¬ 
siders. 

The outside work California now does cannot be 
done by whites were there no Chinese in the State, un¬ 
less the whites are willing to work for Chinese pay. 
This means, that they also must not bring coin within 
the State and try to circulate it. The bringing into 
California of 20 millions of coin and circulating it would 
end all selling of overproduction outside. So it may 
be seen that did California send all its Chinese away, 
then the coin received from one year’s overproduction 
will end all the outside work. 

With San Francisco it is the same as the State. The 
Chinese in the city now sell to the poor whites in the 
countrv. San Francisco workmen should remember 
that the farmers in the country are a cheap lot taking 
them together, and will not pay a decent price for pro¬ 
ducts if they can help it. So if San Francisco drives 
out its Chinese the whites must be content with the 
work they now have, for they cannot take the Chinese 
work unless it be at Chinese pay. 

For reasons just given it will be seen I can not say' 
that much has been lost or will be lost by hiring Chi- 


L 47 ] 

nese, for the people could have in the past and can in 
the future destroy the power to sell overproduction by 
bringing into the State coin and circulating it. The 
driving out of Chinese can be followed by a rise in 
wage sufficient to destroy the power to unload. 

Still keeping Chinese in the State does no good but 
forces the whites to unload outside. The State would 
be better without them and carrying on a balanced 
trade. As it is this is all the whites do, for the Chi- 
• nese get all the benefit from more then a balanced 
trade. The Chinese are a living witness of the 
California white’s ignorance and habit of bringing coin 
into theState, instead of buying outside with it. 

43. EXPELLING CHINESE. 

Some time back the people of Eureka expelled their 
Chinese from the town. Supposing the Chinese to 
have numbered 300, their expulsion would give work 
say to 300 whites, who by their expenditure may give 
work to 200 more whites. So one can see that a gain in 
number of workers can follow the expulsion of Chinese 
from any interior town. 

Some sav the town saves 100,000 bv the chano-e. 
this being the sum the Chinese sent away each year. 
This is not so, for the 500 new white workers cause 
the town to consume more and so the 100,000 go to 
buy more from outsiders. The town gains 100,000 of 
merchandise. 

The expelled Chinese may even get the 100,000 
coin by unloading on Eureka, from places outside, or 
some other Chinese can. California Chinese lovers 
can unload on Eureka. The same can take place if 
all the smaller towns in the State expell their Chinese,, 


[ 48 ] 

the Chinese then coming to San Francisco and unload¬ 
ing on the towns. Still the towns will gain by it, for 
it is better that the Chinese work for 500 whites in 
Eureka say, then elbow the 500 whites out of a job. 
If a Chinese lover is forced to discharge 100 Chinese 

'T 

and take 100 whites, even do the Chinese then work 
for the 100 whites, it is better than before, for 100 
whites get a job. 

Some say San Francisco does not want the expelled 
Chinese and can lose by having them come to the city. 
This is not so, for the Chinese will work for outsiders, 
and if driven from San Francisco the city can not get the 
work. San Francisco will not lose while the smaller 
towns will gain. If San Francisco also expelled its 
Chinese, then the Europeans and Easterners could un¬ 
load on the State, taking the place of the Chinese. 

Some will say that the fruit, etc., interests are built 
up by Chinese and expelling will destroy this business. 
I say let it spoil, for if California cannot sell 20millions 
of fruit, wine, etc., outside, without giving 20 millions 
to Chinese, it ought to spoil. The State can not be 
hurt much by losing the power to unload fruit, etc., on 
others and giving the coin to Chinese. 

So it will be seen that while San Francisco will not 
lose, even did all the expelled Chinese come to the city, 
that the interior can gain. Whites will take the place 
of Chinese outside, and their consumption can allow of 
the Chinese in the city unloading on the interior. In 
this way the coin will leave the State, which is nec¬ 
essary to avoid inflation, etc. 


CONSUMPTION. 


CHAPTER VII. 

44. ENGLISH IMPORTS. 

The English import some 400 millions more than 
they export. This may to some seem not in keeping 
with England unloading overproduction, yet as I see it 
England can unload all the same. 

If an English trader takes 100,000 worth of goods 
to Mexico, by the time freight, duties, etc., are 
paid, also the profits of trade added, the goods may be 
worth 200,000, at which figure I will suppose the 
trader sells. Now, if the trader then buys 200,000 
worth of Mexican goods, by the time the goods get to 
England, they can be worth 300,000. If the trader 
has made exorbitant profits—as often is the case in 
such trading—the value of the goods may be as high 
as 400,000 when they enter England. 

Here one has exports 100,000, imports 300 or 
400,000. One can see that the freight both ways on 
sea, the land freights, the Mexican custom dues, taxes, 
etc., and the traders’ profits, are all added to the ex¬ 
ports from England. As the English do this kind of 
trading all over the world, one can see that it is easy 
for England to make 400 millions more imports by sell¬ 
ing but a portion of her exports, and that another por¬ 
tion of her exports can be overproduction. For exam¬ 
ple : Suppose San Francisco could do the same. A 
trader could take 100,000 worth of goods to Mexico 
say, sell and buy a return cargo, which may be worth 
400,000 when he gets to San Francisco. The same 
trader can also take another 100,000 worth of goods 



[ 50 ] 

and sell it for 200,000 coin, bringing the coin to San 
Francisco. The exports then will be 200,000 merchan¬ 
dise, with imports equal to 400,000 merchandise, be¬ 
sides there would be imports of 200,000 coin from what 
can be overproduction. 

45. CONSUMPTION AND TRADE. 

In order that England be able to trade as I have 
noted, England must be a great consumer. It the Eng¬ 
lish trader was not able to sell Mexican, Asian and 
other products in England, he could not buy a return 
cargo. In above case, did he sell 100,000 of English 
products for 200,000 outside, he could not make the 
profits on the return cargo, but could only bring to 
England the coin. Did he bring home coin, then 
England may export more than import, yet what good 
does it do her ? It can only inflate, and such selling 
is only dollar hunting. 

The difference between dollar hunting and trading 
one can now see. If the United States sells in Mex¬ 
ico for coin and packs home the coin, it is dollar hunt¬ 
ing. If Mexican goods are taken, it is trading. By 
taking goods United States will import more than ex¬ 
port, still it means more than simply hunting dollars. 
Bv hunting dollars the \ankee can make himself a 
curse. 

The Yankee hunted dollars with his hog, in France 
and Germany. He did not trade, for he did not buy 
of Germany and France as much as he sold. The 
same with Yankee dealings with England of late. 
When France and Germany prohibited our hog, they 
were but trying to stop ; Yankee dollar hunting, 
which is both right and proper. 


[5i] 

The worst of it is, dollar hunting - does the Yankee 
no good, for the coin simply inflates prices or lays idle. 
To-day there is plenty idle coin, and if during 1886 a 
100 millions ot coin are brought into the country it will 
only be piled up in banks, if not used to inflate. It 

does United States no good and should be invested 
outside. 

Some may think England can sell products brought 
into England from Asia say, to some of the other 
economic nations and so not consume them herself. 
This is true, but England must consume what she gets 
in exchange. The Asian products may be given to 
United States for wheat and England consume the 
wheat, which is equivalent to England consuming the 
Asian goods. It all ends in England’s capacity for 
consuming. 

Did the English reduce their consumption to a 
shanty, hog, hominy, etc. living, the power of England 
as a trader would decay. The traders who sell Eng¬ 
lish goods would not be sure of being able to dispose 
of Asian, Mexican and other goods, so would bring 
home coin. San Francisco traders are in this latter 
position. They have a cheap people in California and 
so cannot dispose of much Mexican, Asian or other 
products. A trader’s return cargo is limited to what 
California can consume. As most Californians enjoy 
gambling, whisky, etc., more than a fine or large quan¬ 
tity of foreign goods, of course a San Francisco 
trader cannot act like an English trader. 

All San Francisco can do with Mexico is to do a lit- * 
tie trading and the rest hunting dollars for Chinamen. 
We can unload on Mexico perhaps some overproduc¬ 
tion and give the coin to Chinese. But we cannot buy 


more from Mexico than we can consume. The same 
rule holds good for United States. 

The consumption of a town or country sets its trade. 

It must he able to consume much if it wants to trade 
much. If, by economy, it reduces its consumption, of 
course it reduces its trade. A trader can only bring 

back merchandise or coin. The latter does no 
good unless it is used outside, which is equivalent to 

bringing back no coin. Economy is only good to give 
a people a dog’s living, and will degrade all who prac¬ 
tice it. 

Christ may have said this to the Jews, for no doubt 
they degraded themselves by economy and dollar hunt¬ 
ing. When Christ treated the money changers of Je¬ 
rusalem with contempt, he was right. It is exceed¬ 
ingly difficult to tell exactly what Christ did do, but 
his views on usury, etc., all make one believe He saw 
clearly what was to blame ; but was not understood by 
the Jews or even his disciples as regards his views 
on trade, etc.' 

46. CITIES AND FARMERS. 

If San Francisco buys from the farmers 30 millions 
of farm products yearly, then San Francisco can sell 
the farmers 30 millions of products and so get the 
money back. This trade will not make any change in 
wages, etc., but be natural and right. But does San 
Francisco try to sell 40 millions, then 10 millions of 
coin must be taken, because only 30 millions of farm 
products are bought. This 10 millions can do the city 
no good, unless the city spends it outside. If not, 
then it will inflate wage or must be given to Chinese. 

So one can see that consumption sets the trade of a 


[53] 

city with the farm class. No matter how much the far¬ 
mers of California sell, the towns in the State cannot 
trade for more than they buy. The towns can sell 
overproduction and give the coin to Chinese, but this is 
not trade. So San Francisco is blocked completely 
from gaining by reason of fruit, wine, etc., sales by far¬ 
mers of California—by her consumption. Neither can 
San Francisco do more trading with the East or foreign 
countries than her consumption allows. 

47. It is said that England can get along without the 
United States, as she can buy wheat, cotton, etc., from 
elsewhere. This may be true, but there is another side 
to the question, which I will show : 

India has no use for South American products, so if 
England has been in the habit of sending manufactures 
to South America and taking in exchange products, 
which were then exchanged for United States wheat, 
cotton, etc., one can see that England must stop selling 
manufactures to South America if she buys no wheat, 
cotton, etc., from United States. 

What good will it do England to sell manufactures 
to Asia, Africa, Mexico, Cuba, etc., for products she now 
exchanges for wheat in United States, if she does not 
want to exchange any longer ? None. England is not 
a Wall Street where gamblers congregate, but is a trad¬ 
ing country, and when she gives up trading with the 
United States she must give up trading with Asia, Af¬ 
rica, etc., as regards what Asian, African, etc., products 
the United States now buy with her wheat, etc., * 
from England. 

If England does not buy of Germany, France, etc., 
then England cannot exchange many products she now 


gets with her manfactures in Asia, Africa, etc. 1 he 
English consume only a portion of the Asian, etc., pro¬ 
ducts they get with their manufactures, and depend on 
exchanging the rest. I his they cannot do if they re¬ 
fuse to trade with others. 

If England exchanges cottons, etc., with Asia for 
Asian products, and then exchanges the latter for 
United States wheat, it is as good as if England sold 
her manufactures to the United States. Let England 
refuse to do this trading and England must let the 
Asian products lay in Asia. The United States can 
then go to Asia and get them herself. 

The English, like other people, can destroy them¬ 
selves. If England buys wheat from India, Egypt, 
etc., she can cripple trade now depending on the 
United States. The consumption of United States is 
thus an important factor in English trade. India, 
Egypt, etc., do not consume what United States con¬ 
sumes. All the economic nations are in one boat, and 
can only hurt themselves by hurting the others. They 
grew up together, and in order to keep things as they 
are must act together. 

One can now see how England depends on United 
States and others. The English do much of their ex- 
chano-ino- among Asians, Africans, etc., because they 
can dispose of what they get in Asia, etc., to the United 
States and others, and so cannot be too independent 
without paying for it. The consumption ot United 
States therefore has something to do with England’s 
trade. 

48. CONSUMPTION AND LABOR. 

For reasons given the American workmen cannot 


expect to do more labor than what is created by the 
demand within United States, and this demand will 
depend upon the style the people live in. If the 
workingmen themselves cut down the consumption, 
they reduce the demand for labor and help to throw 
themselves out of a job. 

For industrial purposes the workmen of every town 
can consider themselves as separate from the rest of 
the people, for this they are, as the town consumption 
sets its trade. San Francisco can be surrounded by 
gold miners, also fruit, wine, etc., producers, all with 
plenty of coin, yet San Francisco is not likely to do 
more work than her consumption demands. 

It the San Francisco capitalists and workmen had 
any sense they could unload overproduction on the out¬ 
side, and with the coin received, buy up propety out¬ 
side the city. In this way they could imitate Eng¬ 
land, and so, perhaps, get more work than they do to¬ 
day. But such a dumping cannot be kept up forever, 
and again is not likely to take place, for San Francisco 
people love to pack coin home for gambling in real es¬ 
tate, stocks, etc. ; also, the workmen are always want¬ 
ing more wage. 

o o 

The workmen of San Francisco or any other town, 
by wanting too much money wage, can easily cause the 
trade of a city to be reduced to the consumption of a 
city. So we can see how the tendency of things is al¬ 
ways towards forcing a people back on their own con¬ 
sumption. 

The workmen of San Francisco, therefore, can only 
depend on the consumption of the city for work. Do 
the whites live in shanties, wearing but the cheapest 
clothes, eating but the cheapest food, etc., then, of 


* 


[ 56 ] 

course, only cheap scrub work will be demanded; also, 
there will not be much of it. The cheap food makes 
San Francisco buy little from farmers, and so the far¬ 
mers can buy little from the city, which gives little work 
for the city workers. In every way the workman will 
find there is little work. 

If the people lived in better style, demanding stone 
houses, fine food, etc., of course there would be more 
work, also, it would be of a finer quality. The city 
would buy more from and so be able to sell more to the 
farmers, without inflating prices in the city. 

Increase of population will not help the working peo¬ 
ple, for every 1,000 addition brings 400 more workers 
and only 200 jobs. The 1,000 addition can be as 
scrubby as those now in the city, and so more workers 
than jobs come with them. 

The workingmen, also, can see that economy 
gives less work and the buying of cheap things gives 
cheap work; and that the reason they loaf to-day is be¬ 
cause the demand is small. Booms are generally made 
by a sudden demand for railroads, etc., more than by a 
demand for more shelter, food, clothes, etc. 


FARMERS, 


CHAPTER VIII. 

49. FARMERS’ INCOME. 

The farm class is not the civilizing class, and creates 
nothing. Were all farmers there would be no need of 

o 

money, trading, capital, etc., as we have it to-day. 
Everything depends on the towns or industrial class. 
The farmers do not produce their own income, it 




comes from the towns. Let the towns disappear and 
the farmers’ market will disappear. Reduce the towns 
to nothing and the farmer’s income will go to nothing. 
The farmer’s income, as we know it, will vanish. How 
great a change the size and number of towns make in 
the farmers’ incomes I will explain. 

Taking males to go by, I will first suppose that 800 
of each 1,000 able-bodied males in a nation are far¬ 
mers ; the balance, 200 in number, I will call towns¬ 
men. This gives four farmers to one townsman and 
family. At prices ruling in United States to-day, the 
farmers do not get over 200 per townsman per year. 
At 200 per townsman, and four farmers to each towns¬ 
man, the farmers cannot average over 50 each as in¬ 
come per year. 

When 500 are farmers and 500 townsmen per each 
1,000 males, there will be one farmer to one townsman. 
This will make each farmer average 200 income per 
year. 

When 200 are farmers and 800 townsmen, the far¬ 
mers averaging four customers each can average 800 
income per year. 

One can now see how the towns influence the 
farmer’s wage. In the United States there are 
about 500 farmers to 500 townsmen, so each farmer 
averages one customer. A glance at the United 
States census of 1880 will show that the farmers could 
not have sold over 1,400 or 1,500 millions worth of 
products during the census year. They may have pro¬ 
duced more, but they and their animals consumed 
much of the product. (I include sales of cotton, to¬ 
bacco, etc., in above sales.) 

As there were over 7,000,000 males engaged in 




[ 58 ] 

farming, any one can see that they did not average 
over 200 per year, and this in the boom year of 
1879-80, when prices were higher than to-day. 

In Russia there are 800 farmers to 200 others, and 
the Russian prices are not as large as those of United 
States. Even if they were, and each townsman was 
good for 200 per year, there being four farmers per 
townsman, they would not average over 50 each. 
This would make the Russian about four times worse 
off than the American farmer, did the Russian farmers 
do no industrial work for themselves. 

From the 200 received by the average American 
farmer must be paid taxes, repairs, farm expenses, etc. 
Supposing these to take $50 or $100, one can see how 
little the farmer has left for buying town products, 
paying doctor’s bills, etc. A town laborer with 350 
per year can do as well as the average farmer. 

50. HENRY GEORGE. 

Henry George holds: “That if some of the idle 
men now in cities and towns were producing wealth 
from the land, that they would not only be employing 
themselves but would be employing mechanics in the 
cities,” etc. 

This idea is wrong, for there is no wealth produced 
from land, it comes from the towns. If there were no 
town people using money, the farmers could not sell to 
them, and so would have no income or wealth as we 
know these terms to-day. They could exist as savages 
exist, but it would not be the existence of to-day. 

Again, the going into the farm class of town people 
would reduce the number of the farmer’s customers, 
This would make the farmers buy less from the towns, 


[59] 

and thus cause more idlers in the city than there are 
to-day. For example : Suppose that in San Fran¬ 
cisco there are 20,000 idlers to-day ; also that the city 
now buys 30 millions from the farmers. Now suppose 
that 10,000 idlers or dependants, or 30,000 people say, 
leave the city and take to farming, then the first re¬ 
sult will be that the city will buy at the rate of 27 mil¬ 
lions from the farmers. Instead of selling 30 millions 
to the farmers the city will sell 27 millions, which will 
cause the discharge of workmen who now make three 
millions of products for farmers. Therefore one result 
will be to cause more idlers. 

The farmers also will suffer, for they will sell but 27 
millions, and must divide this with 10,000 new farmers 
Using figures, suppose 50,000 farmers now sell the 
city 30,000 or 600 each. When 60,000 farmers sell 27 
millions they will average but 450 each. So the going 
into the farm class of 10,000 idlers from San Francisco, 
will cause men to be discharged from work in the city> 
and also reduce the farmer’s income from 600 to 450 
each. A total trade of but 54 millions will take the 
place of a trade of 60 millions to-day, thus causing a 
loss of six millions of trade. 

Apply this r # ule to United States, suppose 2,000,000 
idle men went into the farm class from the towns. 
This means that the farmers will sell 400 millions less 
to the towns. The towns will then sell 400 millions 
less than to-day. and so must close down factories and 
discharge workmen, etc., etc. 

The need of capital also vanishes with the shrinkage 
of the town class. Reduce the town class of United 
States one-half and one-half the factories must close 


down. All depends on the towns, nothing on the 
farmer. 


51. Again Henry George holds “that landlords ab¬ 
sorb the profits coming from increase in productive 
power.” As I see it the rise in rents is due to the 
fact that the town classes have increased. For exam¬ 
ple, suppose that 400 of the 800 farmers per each 1,000 
males in Russia, joined the town classes, the propor¬ 
tion would then be 400 farmers to 600 townsmen, 
which is equivalent to raising the incomes from $50 to 
$300 per year. By such an increase in income no one 
is robbed, but it is the natural result of increase of 
town class. 

A similar increase of farm incomes would take place 
in United States, were the towns to increase at the ex¬ 
pense of the farm-class. Let us say the farm class 
was reduced to 250 per each 1,000 males. This would 
save three customers to each farmer, instead of one as 
to-day. Each customer need give no more than to¬ 
day, yet the farmers will average say 600 where they 


now average 200. 


52. Large farms are also a natural result of civili¬ 
zation. Reduce the farm class one half in United States 
or Russia, and the size of the farms will double. Russia 
will never be more civilized unless this is done. It is 
the natural result of progress. 

Of course some say Rome decayed because of large 
farms, yet these are wrong. Both Christ and Tacitus 
lived when Rome was decaying, and both noted a de¬ 
cay in spirit. Rome decayed because her spirit rotted, 
just as the Jews lost power as their spirit decayed* 
Large farms would not hurt in the year 1886, and they 


[6i] 

would not hurt in the year i. What can make them 
hurt is to be used in a wrong spirit, yet small farms 
can hurt if used in a wrong spirit as well as large 
ones. 

My opinion of a historian is this, that a man who 
can not tell the cause of hard times when it is under 
his very nose, will be a very poor judge of the cause 
of hard times in the year i. I sooner take the opinion 
of Christ or Tacitus who were there, than the opinion 
of a man who can not read his own times correct. 
Christ read right, and his opinion will fit 1886 as well 
as the year 33. Too much dog in the ancient killed 
him. Too much dog in the modern causes hard times. 
Large farms handled in the right spirit can hurt no 
one, while with rotten spirits any kind of farm can 
hurt. One must blame the spirit not the farm. 

53. Mr. George also notes “that miners did not go 
to California because shoemakers, etc., were there, but 
that the trades followed the mines, etc. Also that it is 
the development of the country that makes the city 
grow.” 

As I see it the gold miner hunted gold, for the rea¬ 
son that towns in the East, Europe, or the world over 
gave gold a value. Were there no towns, gold would 
have had little or no value. So it was the shoemakers, 
etc., in other parts of the world that employed the 
miner. As regards the country creating cities, I do 
not believe the free cities of Germany in the middle 
ages were caused to grow by the serfs of their day, but 
were caused by men who wanted more than a serf’s 
living. 50,000 people can go into a new country and 
start cities and farms together. Both go together 




[62] 

more than one depends on the other. However, to< 
build cities of any beauty, one must have fine mechan¬ 
ics, etc., and these are the product of a high taste. 

54. Give Henry George the island of New Zea¬ 
land, also give him millions of laborers, then could 
he build up a fine civilization ? No. With laborers he 
can not build fine stone houses, etc., neither can he do 
anything but scrub work. He could but let his laborers 
swarm over the island as poor w r hites. 

If Mr. George wants better than a laborer can do he 
must get better men, or educate his laborers. The 
former he can do by giving them more than laborers’ 
pay the latter he will hardly be able to do, for the 
reason laborers, as a rule, will not learn under any cir¬ 
cumstances. The tastes of a laborer are coarse and he 
sees no sense in fine houses, etc., and so he will not 
learn to make them. A coarse tasting man never 
makes a fine mechanic. At the most one can but make 
a scrub of him. 

With fine mechanics Henry George can do any¬ 
thing. With these, the finest of buildings, etc., also 
merchandise can be had ; with scrub mechanics a scrub 
civilization can be made. So all depends on the men 
not on the land. 

San Francisco to-day is proof of this. The streets, 
sewers, houses, etc., show the taste of the people. If 
they wanted better they could have better, but they see 
no sense in building more than a shanty town. A mi¬ 
nority are superior beings, and could one gather all of 
these in a town by themselves, one would find that 
not only do they want better, but that they have the 
skill, brains, etc., to satisfy their w T ants. 


[63] 

My study of workmen convinces me that the more 
artistic the mechanic, the finer is he in feelines, taste, 

C> 7 7 

etc. All go together. So if one can find men who 
want the finest, one also finds men who can make the 
finest. A laborer can suit his tastes, because he wants 
but scrub products, so can all the rest. 

If I understand Mr. George, he tries to find a way 
by which the laborer can enjoy the finer products.. 
This he never will find, for the laborers do not want 
finer; also, if given land, would not make finer. They 
will live like poor whites, as all over United States one 
can see them. They sooner drink whisky, etc., than 
work about their farm ; also, will not grow variety of 
food for their own table ; ao-ain, if ouven better food. 

7 O 7 o i * 

will spoil it by slovenly cooking. 

55. FREE TRADE AND FARM CLASS. 

How foolish it is for capitalists in United States or 
Europe to force workmen from town in farm class, one 
can see. Do the town classes remain stationary in the 
United States, and the farm population double, not a 
particle more trade will result, while the farmer will 
be degraded. The degradation of the farmer may re¬ 
act on the towns, and so less capital than to-day will 
be needed. Capitalists are mainly a creation of civiliza¬ 
tion or growth of industrial class. * 

Let the farm class of California be increased by ten 
millions, and does the town population remain station¬ 
ary, then the towns will not exchange more with the 
farmers than to-dav. Degradation follows increase of 
farm class, just as civilization is the opposite. 

Free trade, one can see, by destroying the industrial 
class, can mean degradation. Economiss do not draw 


a line between the farm and industrial producer, so be¬ 
lieve that if free trade causes people to change from 
town to farm work, that it will not hurt. It is natural 
that a man with Henry George’s opinion on farmers 
will see no harm in free trade, but, as shown, one can 
see that the civilized demand of a man disappears, 
when he turns farmer. If many farmers meant civili¬ 
zation, etc., then Russia would be very civilized. All 
will suffer by increase of farm class, whether they be 

farmers, capitalists, industrial workers or others. 

— 

• WAGES- 

CHAPTER IX. 

56. MONEY AND WAGES. 

In looking- at wages two things must be considered, 
namely, that the amount of money in circulation can 
be influenced by tariffs, and that the money in circula¬ 
tion really all belongs to the town classes. 

Tariffs by raising prices make more money needed 
to carry the prices than when there is no tariff. The 
United States can circulate more money by'raising- 
tariffs, and so allowing prices to go up. 

Money circulates among the farm people, but it is 
money given them for farm products. In United 
States the farmers may receive an average of 100 mil¬ 
lions a month from the towns, which money all returns 
or should return to the towns within reasonable time, 
for town products. While having the money and be¬ 
fore returning it to the towns, the farmers use it among 
themselves, yet one can see it all really belongs to towns. 
When two persons each have merchandise to exchange 
only one need have money. It is not necessary that 




[ 6 5 ] 

both have money. The farm and town people are like 
two persons, and so money for exchange purposes only 
needs to be held by one. 

I refer only to money in circulation, for the farmers 
or others can have money in hoard or bank that does 
not circulate. 

57. CIVILIZATION AND WAGES. 

When civilization is low and a people only care for 
coarse living, the result is that the industrial work de¬ 
manded is small, and the average number of industrial 
workmen employed therefore few compared with a 
more quality people. This does not mean, however,, 
that the towns need be so very small, for like San 
Francisco, a town may hold 80,000 of what could be 
industrial workers and not work more than 40,000 at a 
time. The style of living of the city requires that 
equal to 40,000 say must work a full year, yet over 80,- * 
000 can work and average less than 6 months work 
each. In this case money enough for to work 40,000 
is all that is needed. If by living in better style, the 
city has to work the 80,000 steadily, then more money 
will be needed. 

An island full of serfs may have a city as large as 
San Francisco, while having factories or capital enough 
to work but 20,000 workers at a time, and yet 80,000 
workers can earn a poor white living by working an 
average of three months each. In such a case as this, 

I call the industrial class small, although the number 
of workers can by a census be made large. A city of 
quality people of the same size would not have more 
than 80,000 industrial workers, or no more than a city 
full of serfs, yet the 80,000 can work all the year on 



quality product where with serfs only three months are 

Although a quality city may work 80,000 men the 
year round, and a scrub city average but 20 or 40,000 
working at a time, still the scrubs can circulate as 
much money per capita as the quality people. 1 his 
the scrubs can do by raising the tariff. Circulating as 
much as quality people and working fewer industrial 
workers, of course wages can be much higher among 
the scrubs than among the quality people. 

This is why United States with 10 per capita in cir¬ 
culation, could pay higher wages than England, France 
or Germany with the same per capita, all four nations 
using the same banking, etc., methods. 

England employs 21,000 industrial workers to United 
States 7,000, so with no greater proportion of traders > 
also same banking methods, United States should be 
able to pay $3 when England paid $1 per day. If the 
farm class used money of course it would be different, 
but thev do not. 

An island full of scrubs, therefore, with a small in¬ 
dustrial class, circulating by aid of tariffs, as much 
money as an island full of quality people, with an indus¬ 
trial and trade class three times its size, can pay three 
times the wages. A man can hire seven scrubs 
with $21, and pay $3 per day, as easy as hire twen¬ 
ty-one first class workmen and pay them $1 per day. 

The more like savages people are, the higher can be 
the wage, and this is why economy can raise wages. 
If the people of the United States would economize so 
that only half of the present number of industrial work¬ 
ers would be needed, with the same amount of coin in 
circulation as to-day, the wages could be twice as high. 



[67] 

The opposite takes place when a people live better. 
Let the U. S. people demand a finer quality, so as to 
give 14,000 industrial workers a job instead of 7,000 
per each 100,000 people, and with the same coin in 
circulation as to-day, wages must come down. If San 
Francisco wished to work 80,000 industrial workers 
instead of 40,000, with same money as to-day, wages 
must come down one-half. Still any man can see 80,- 
000 can make a finer quality than 40,000. So the 
people would live better on half the wages. 

It will be seen that did England discharge 14,000 of 
each 21,000 of industrial workers, and use the money 
now used in paying 21,000 workers for paying 7,000, 
that the wages can be 200 per cent, higher. The same 
if Germany makes tramps of 7,000 of each 14,000 in¬ 
dustrial workers she employs, can the remaining 7,000 
have double wages. 

If United States, by improving machinery, can do 
without 3,500 of each 7,000 industrial workers she now 
employs, then wages can be doubled. Any people can 
have high wages if they let the most of their labor 
tramp or waste in farm class and use all the money to 
work a few scrubs. 

Wages are higher in the United States, when circu¬ 
lating the same money per capita as in England, be¬ 
cause so many loaf in towns in United States, while a 
few work using all the money to pay themselves high 
wages. 

If the English wanted to pay U. S. wages they 
would have to circulate say 40 or 60 per capita when 
U. S. circulates 20 per capita. Germany would have 
to circulate 40 per capita against U. S. 20. This 
means, of course, that the trader class should be in 


« 


[63] 

same proportion in the three countries and banking, 
etc., the same! 

By having a larger trading class, U. S. can neutral¬ 
ize some of the effects of small industrial class. The 
same by having clumsier banking system. 

U. S. is something like Mexico, where the bulk of 
the people live in hovels, on beans and pancakes, etc., 
while a small upper class live in better style. The 
bulk of U. S. people live coarse, and a few live fine. 
So U. S. without protection would be more like Mex¬ 
ico as regards the money she could circulate, then W. 
Europeans. 

From above notes one can see that I am trying to 
show that by a scrub demand, but a few industrial 
workers will be worked, and that as money is used by 
town class, the farmers not counting, that the fewer the 
industrial workers, the larger can be the wage. The 
United States to-day does not circulate any or much 
more money than England, and the banking, etc., sys¬ 
tems are about the same, yet wages in U. S. are much 
hio-her than in England. This I hold is mainly due to 
the small size of the industrial class in U. S. Did 
U. S. wish to work more industrial workers at same 
wao-e it must circulate more coin or reduce wage. So 
the tendency of civilization being to make a larger in¬ 
dustrial class, is to reduce wages. 

REAL ESTATE. 

CHAPTER X. 

58. CIVILIZATION AND VALUES. 

Rents are made by money in circulation just as 
wao-es are. Did United States raise the tariff so as 

<n> 




[ 69 ] 

to double the amount ol coin in circulation, then 
rents would double, also capital values, while much 
wealth would be created. Is the tariff reduced, then 
rents will fall and much wealth be lost. 

People an island with scrubs, who need but 3,500 
industrial workers to United States 7,000, yet, by tar¬ 
iffs, circulate the same amount of money per capita, 
then, as the wages will be 100 per cent, higher as in 
United States, rents can be 100 per cent, higher, mak¬ 
ing real estate more valuable, even though the island 
has but shanties on it. 

People another island with quality people, who cir¬ 
culate the same money per capita, yet have 14,000 fine 
industrial workers employed, and wages will be 75 per 
cent, lower than among the scrubs, while real estate be 
75 per cent, lower, even though the cities be built of 
artistically wrought stone, etc. 

So an island covered with cities built of stone, can 
have cheaper real estate than an island with nothing 
but shanty cities on it. Also the scrubs, in their shanty 
cities, can despise the pauper paid mechanics who live 
in the stone cities. 

Could the buildings, docks, etc., of San Francisco be 
changed in one night into the finest of stone buildings, 
etc., the city can be cheaper than to-day. San Francisco 
built of stone would be cheaper than San Francisco, the 
shanty town of to-day. The reason would be that the 
rents would not pay going interest on the buildings, much 
less on the lots, so a frightful fall in lot values can take 
place. The shrinkage on land values would more than 
equal the increased value of the stone buildings, etc. 

Then let competition or free trade reduce the money 


[ 70 ] 

in circulation, and the value of the city would again be 
cheapened. 

An exaggerated view of how real estate values are 
created in United States is, that one of ten empty lots 
has a shanty, say worth 500 built on it, which rents so 
as to bring going interest on a value of 2,500 say. As 
the shanty is only worth 500 the lot is called worth 
2,000. The other nine empty lots alongside are then 
valued at 2,000, the owners arguing that if the im¬ 
proved property will pay interest on 2,000 lot values, 
theirs will do the same if improved. So one has 20,- 
000 wealth in lots created by building a 500 dollar shanty. 

Had there been built a 2,000 stone building instead 
of a shanty rent would be the same, so only 500 would 
be the lot value. The ten lots would then be worth 
but 5,000 against 20,000 when a shanty is built. So 
one sees that economy in construction creates wealth. 

The more economy is practiced on improvements 
the more wealth is created. Ten lots with a $500 
shanty on one of them would be valued at $20,500, 
while the same ten lots with a stone building on one lot 
could be bought for $7,000. Oh, economy, what a 
wealth creator you are. 

Had San Francisco started in building stone build¬ 
ings, this extravagance would have caused much loss of 
wealth. Even to-day were the shanties replaced by 
stone buildings, wealth would be lost. One can now 
see a reason why the rich property holders of San 
Francisco are opposed to all improvements. The 
scrubbier the docks, streets, sewers, buildings, etc., the 
wealthier is the city. 

The hi ah value in land acts as follows : Does a man 

o 

come to San Francisco with 5,000 and intend to locate 


[7i] 

he must pay about 4,000 for a lot on the outskirts of the 
city. This leaves him with only enough to build a 
shanty, and so the wealth of the city receives no hurt. 
Were land cheap he could buy the same lot for 1,000 
say, and then spend 4,000 in building a stone build¬ 
ing. By this 4,000 worth of labor or merchandise 
would be consumed against 1,000 as to-day. How 
workmen, etc., gain by cheap real estate one can see. 

One can also see how the more like savages a people 
live, do they also manipulate the tariff properly, how 
wages, rents, real estate, etc., can be high in the cities, 
and how the farmers can live like poor whites. The 
same kind of economy as regards farm improve¬ 
ments can add to the wealth of a country. Also economy 
in railroads, bridges and other constructions allow of 
much water or wealth to be made. The incomes of 
railroads, like everything else, comes from the coin in 
circulation, and so the cheaper they are built the more 
water can be put into the stock. 

How much the Europeans have lost by their ex¬ 
travagance in building their docks, wagon and rail¬ 
roads, also other constructions in expensive stone, etc., 
one can see. Had the Europeans acted as the upper 
class of San Francisco have acted, they may have been 
much wealthier in real estate, watered stock, etc. It 
all depends upon the style in which the thing is done. 

In above notes I have tried to point out how the 
cheaper we build houses, railroads, etc., the greater 
will be the wealth in land. Were England to have its 
stone buildings, etc., replaced by the cheapest kind of 
wooden constructions, the land values would be in¬ 
creased. I n United States by building scrubbyjand cheap 
and circulating a large amount of money much land 


wealth has been created. Now let the people become 
more civilized and build better, then land will lose in 
value. The tendency, therefore, of civilization is to re- 
duce value of land. 


RECAPITULATION AND NOTES. 


CHAPTER X!. 

59. I n chapter 1 1 gave a few notes on civilization. 
In them 1 have called civilization the style we live in, 
which is its material form. The importance of the 
style we live in, one can see by the fact that consump¬ 
tion sets the trade of a town, state or nation. Are the 
people of San Francisco of poor white taste, then the 
size of the industrial class and *the trade done by the 
city will be small. Are they of superior taste then the 
industrial class, etc., will be large. 

In chapter 11 I have noted on overproduction. I 
gave the name overproduction to the merchandise 
saved when people save money. Money in circulation 
being but a representative of merchandise when it is 
saved means that merchandise is saved. This saving 
I call overproduction. Where the saved money is 
spent on construction of course merchandise is con¬ 
sumed, and no overproduction exists. This spending 
can be done within a city, state or nation, or outside; 
when in the latter case it comes under the head of 
foreign investments and the merchandise must be sent 
after it. If the city of San Francisco saves 15 mil¬ 
lions and invests it outside then 15 millions of over¬ 
production must be sent outside. Where the money 
goes must go the merchandise it represents. Also in 





same chapter I gave some of the outlets past and 
present for the results of saving. I may not have 
been as clear as could be wished, but this could not be 
helped. One however can get a clearer idea as one 
goes on through the other chapters, and sees what 
part overproduction plays in trade. 

In chapter hi I have shown how competition can 
throw money from circulation; how if one economic 
nation, in order to unload on another overproduction, 
cuts prices, the rest must do so, thus piling up money 
all over the world; how this cutting allows of the 
economic nations taking 1 coin from circulation the world 


over, which gives an outlet for overproduction; how 
this piling up of money acts on rents, interest, real es¬ 
tate, etc. 


One can see that the whole cause of competition is 
what I call overproduction. Each economic town has 
more to sell than to buy, and so the towns compete in 
order to get rid of the overproduction. As shown 
further on the towns can not sell more to the farmers 
or non-economic peoples then they buy of them, so the 
competition is to unload on one another. 

In chapter iv I note on Protection, where I again 
show how overproduction acts. Fair exchange the 
economic towns or nations of the world do not want. 
They want to unload overproduction on one another. 
This directly affects the towns, having no bad influence 
on the farm class, other than that which comes through 
having the towns destroyed. It is a civilized war be¬ 
tween the various portions of what civilization has 
built up. Civilization has created the towns and the 
towns are at war among themselves. Instead of 


[74] 

standing together they hope to grow at the expense 
of one another, which is a farcical hope at its best. 

That economists can see no harm in free trade, is 
because they can see no division between the farm and 
town producer. Economists do not draw a line, and 
without a line no reasoning can be done. One must 
draw a line somewhere or guess like a fool. Also one 
must take into account spirit. Both drawing a line and 
taking into account spirit, while applying all rules uni¬ 
versally is where Christ’s powerful conclusions come 
from. 

Henry George’s ideas ,on free trade seem based on 
the idea that there is no overproduction, and only ex¬ 
change trade is done. Here he is fooled. By exchange 
trade no one can be hurt. San Francisco could not be 
hurt if Chinese bought 15 millions of mercnandise as 
well as sold 15 millions. It is only when the Chinese 
sell more than they buy that harm is done. Not a dol¬ 
lar would the city lose if all outsiders wanted was to ex 
change. But when a Yankee town sells in San Fran¬ 
cisco and does not buy, then is the city hurt. Again 
Henry George’s idea that land is everything, makes 
him consider the industrial class unimportant. 

In Chapter V. a note on the silver question, noting 
that the real trouble is that silver and gold are both 
thrown from circulation by cutting prices ; that silver 
will always be found in Europe so long as the people 
unload on silver people and take coin away; that a cut 
in prices from now on will throw more of both metals 
from circulation while keeping the mining output from 
being used, etc. 

In Chapter VI, I note on the Chinese in California, 
that Chinese really do not do more work than 


[75] 

what the state does for others; that were the Chinese 
expelled the whites could not get their work, while wages 
would advance ; that to keep the Chinese work the 
whites must work for Chinese pay, etc. 

It may seem to workmen queer that they cannot have 
the Chinese work, but they must remember that the 
city does not create the demand. If the whites make 
boots, etc., then the foundrymen, who make quartz mills, 
etc., can not live as well on their present wages. So 
their wages must go up do the prices of shoes, etc., go 
up. This will give the Easterner the quartz mill trade. 
The mining people make the demand and they will buy 
of Easterners if San Francisco does not sell as cheap. 
So the whites must not sell boots, etc., any higher than 
Chinese do, which means work for Chinese pay. If 
the price of boots, etc., go up and foundry wages re¬ 
main as they are, then the foundrymen will suffer. If 
San Francisco wants to sell outside, she must sell as 
cheap as others do. 

The people of the interior towns are mainly commer¬ 
cial people. They can stand in between a Yankee fac¬ 
tory and the farmer, as well as between a San Fran¬ 
cisco factory and the farmer. So if San Francisco will 
not sell as cheap, they will buy from the East. This is 
why, by expelling Chinese, they can gain more than 
San Francisco can. A trading town and a factory 
town are different. The Chinese to-day sell in Sac¬ 
ramento say. Let the Sacramento and San Francisco 
people both expel Chinese, and Sacramento will not 
be so generous as to pay San Francisco more for boots, 
etc., when the Easterner will sell them at the Chinese 
price of to-day. Here it is, the people outside of San 
Francisco will not buy if the price goes up, because of 


the citv hiring whites. So one can see that San Fran- 
cisco cannot get the outsiders to pay more when the 
Easterner will sell cheaper than San Francisco. 

Workingmen therefore must remember that if they 
do not work for Chinese wage, that the East can sell 
cheaper. This is one of the beauties of free trade. 
Did United States adopt free trade, the English, Ger¬ 
mans, etc., would help the Yankees sell cheaper than 
San Francisco can in the interior. All that the work¬ 
men of San Francisco can expect to do, is made what 
the city wants, and how they spend their wages can do 
much as regards what the citv wants. 

Do the workmen want cheap rents, then it means 
cheap houses. This means scrub work, dog-driving 
foreman, etc., with not enough to give carpenters, etc., 
a steady job. Do they want cheap clothes, food, etc., 
it means little work and scrub work at that. Do they 
live cheap in order to spree, gamble, bet, etc., their sav¬ 
ings away, it means little work. 

Workmen keep their own noses in the dirt, also; they 
often treat one another like dogs. Too much dog in 
the workmen will give a dog’s living for the whole. 
To live like men the workmen must learn to act like 
men, not like ignorant dogs. 

Let workmen save on their whisky, etc., money and 
buy papers, books, etc., and they will gain. So long 
as workmen’s heads are like those of cattle so long 
will they act and be treated as cattle. To be reason¬ 
ing beings they must learn to reason and obey a right 
of some kind. If a workman does not study any more 
than a Digger Indian, he will not know any more. 
The mind is the only thing that will lift men up. Not 
to use it means to go it mentally blind. 

o J 


[77] 

In chapter vii I note on consumption. These notes 
dispose ol all editorial wanderings why San Francisco 
manufacturers or traders can not capture the Mexican 
or any other trade. The city’s trade is set by its con¬ 
sumption. Before the railroads brought the Easterner 
in, the city hunted dollars with overproduction all over 
the coast. To-day this is ended as far as the white 
factories are concerned, the Chinese alone being able 
to hold out. Even the latter are hardly able to hold 
their own, also are hurt by the white factory people 
not being able to raise coin to buy from them. Many 
foundrymen, etc., who in the past received coin from 
outside and bought of Chinese, now loaf because the 
Easterner has got his work in outside. 

San Francisco is being forced back on its own civili¬ 
zation, and as this is a cheap shanty kind of civilization 
of course much work can not be expected. Have the 
people no taste for solid books, music, etc., but only a 
taste for speculating, betting, etc., after they 
get a coarse living, then they must take the conse¬ 
quences. The pleasures a sheep herder or gold miner 
indulges in, and the kind of artists such associate with 
when spending a stake, are not the pleasures or artists 
that give work. We must act like a quality people, 
now that the Easterner has spoilt the place where we 
used to get our gambling, etc., money from, do we 
want good times. 

In Chapter VIII. I note the position of farmers as 
reo-ards the town people. Here, again, one sees how 
style acts. A people with little style about them will 
have a small industrial class and a numerous farm class. 
Again, one sees how idiotic it is for city editors advis¬ 
ing men to go into the country, for the going into the 


country destroys trade while degrading the farm class. 

San Francisco people thi(J; that immigration will 
help them, that is the state filling up. This one can 
see is nonsense, for the consumption sets the trade. 
Again, the Easterner can unload on the interior towns 
cheaper than the San Francisco whites can. Only the 
Chinese in the city can compete with the Easterner. 

In Chapter IX I note on wage, showing that money 
circulates among the town class, and that the fewer the 
workmen worked the higher the wage; that the more 
like poor whites a town people live, the larger the wage 
can be; that w r agescanbe high for 80,000 workers in San 
Francisco, because seldom more than 40,000 are work¬ 
ing, etc. 

In Chapter X. I note on real estate, showing that 
the value was made by coin in circulation; that a shanty 
town, with same coin in circulation per capita as a rock 
built town, can be the wealthiest. 

Were all the coin in the world circulated, then wages, 
rents, etc., would go up. After that any increase in 
town, class or civilization would have a tendency to 
pull down wages, etc. Financial improvements, also 
large mining output, may counteract this tendency, yet 
it will exist all the same. 


MISCELLANEOUS NOTES- 


CHAPTER XII. 

60. The view I hold, that consumption sets the lim¬ 
it to trade, practically separates a city from the rest of 
a country. San Francisco politically is one of many 
cities in the United States, but in a trade sense she 





stands alone. She does not depend on the farmers 
but on herself. 

The city as it stands to-day is partly commercial, 
partly factory, (meaning where whites are the work¬ 
ers) and partly Chinese, and the question is, how much 
can the city suffer from competition, unloading over¬ 
production, etc. ? As regards the commercial class 
where they stand between the interior of the state and 
outsiders, little hurt may follow competition; also where 
they stand between Chinatown and the world. But 
where the trader stands between the San Francisco 

factory and the world, the trader can suffer when the 
0 ' 

factories suffer. The main ones therefore that can 
suffer are the white factories and their traders. 

When the Easterner can unload on every interior 
town or camp, also on San Francisco itself, one can see 
how the factories are situated. They must have lower 
wage in order to compete, and the question is how will 
they get low wages? If the city were entirely a fac¬ 
tory city, then the bosses by keeping coin out of the 
city as much as possible could perhaps lower wage. 
But when the commercial classes are numerous they 
can be bringing coin into the city, and so keep wages 
up. The result is, therefore, that the commercial class 
can hurt the factory class. (Of this result I will not 
be sure but call the reader’s attention to it). How 
impossible therefore it may be to have low wage one 
can see. The presence of much money in the farm 
class, by reason of fruit, etc., sales, can help to keep 
up wages. This means crippling of the factory class 
as far as the whites are concerned. 

The white factory portion of the city, if it cannot sell 
outside for coin, will not be able to buy from Chinese, 




[So] 

boots, etc., while, at the same time, white boots, etc., 
factories could hardly run when stores are selling Chi¬ 
nese or Eastern boots, etc., cheaper. This is a hard 
position, yet it is a true one, as regards San Francisco 
to-day. The white factory people, while using gold, 
silver or legal money, cannot, in San Francisco, keep 
up under such conditions. 

If the white manufacturers cannot sell their product 
outside San Francisco, they cannot get the coin to pay 
workmen, buy materials, etc. In this case, the work¬ 
men will not get coin to patronize Chinese or cheap 
Eastern goods; also, many traders, landlords, etc., 
the coin to hire Chinese servants, etc. This is the con¬ 
dition to which things are going, but it may never 
get much farther than to close out the overproduction 
sales, because more than this would force a reduction 
of wage, whether workmen liked it or not. 

The Chinese can sell shoes, etc., cheaper than the 
whites can make them, while the Easterner can keep 
the whites from selling outside in order to get the coin 
to buy of Chinese. This is a position that calls for 
heroic remedies, and may yet force the factory people 
to do away with legal money if they can. 

Formerly, towns like Sacramento, Stockton, Marys¬ 
ville, etc., could sell on the mining camps, also sell 
among- the farmers. As the latter got coin from Eu- 
rope, it was about the same as selling on a mining 
camp. San Francisco could take this coin by unload¬ 
ing on the towns, and give it to Chinese or outsiders 
for products. 

To-day this game is about up, for the Eastern drum¬ 
mer can sell on the towns and then go to the camps, 
supplying the camp stores. So the towns can not un- 


[Si] 

load as easily as before, also San Francisco is barred 
out. The drummer can hurt a town like Sacramento, 
by supplying" the camps, thus making the camps inde¬ 
pendent of Sacramento. The same thing can be done 
in Southern California, for the drummer can sell both in 
Los Angeles and in the smaller towns and camps 
about Los Angeles. 

t O 

61. REMARKS. 

\\ ith most people the only remedy for such 
a position as San Francisco is in, is to prac¬ 
tice more economy, thrift, frugality, etc. As I see 
it, this is the natural remedy of man in his nat¬ 
ural imaginative state ; but a wrong one. What San 
Francisco is suffering from is too much economy, etc. 
We live in shanties; our sewers, streets, docks, etc., are 
scrubby, and in every way we are a cheap people. 
The result is our trade is small, and of 120,000 whites 
available for some gainful occupation, 40,000 more or 
less are always loafing. Again, do we cut down our 
living, the economical Yankee will do the same, and 
the present condition of things will remain as they are. 
Money will pile up in banks ; rents, interest, etc., go 
down; the city will circulate less money than to-day, 
etc. 

Say, San Francisco to-day circulates ten millions and 
the State twenty millions. If, under economy, wages 
are reduced 20 per cent., then four millions will be piled 
up in the State, two millions of which will be in San 
Francisco. Therefore the State or city has no need of 
making money outside, for they will have too much 
already. 

Do the commercial class of San Francisco, also the 


[82] 

wheat, fruit, wine, etc., producers, bring io or 20 mil¬ 
lions of coin into the State and try to circulate it at once, 
wages will go up, when Chinese can be used to take 
the coin away. No more than 16 millions can be cir¬ 
culated are wages 1 wanted to be low enough. The 
manufacturers, therefore, may find that they must suf¬ 
fer, because of the coin the commercial and farm peo¬ 
ple try to circulate, even do they act sensibly them¬ 
selves. 

Real estate speculators will want the city to circulate 
as much as possible. Every owner of sandlots in or 
near the city is interested in keeping much in circula¬ 
tion, while the factories that hire white workers are in¬ 
terested in having wages low' enough so that they can 
hold their own. All this shows what the white facto¬ 
ries may have to contend against. 

« 

62. A REMEDY. 

Pinched as the white manufacturers are in San Fran¬ 
cisco to-day, yet, as I see it, they can dictate as regards 
their prosperity. Were I owner of all the white facto¬ 
ries in the city, did the workmen stand by me, I could 
within ninety days have good times. I may have to 
give up some kinds of manufacturing, but I could take 
much of the boot, cigar, etc., work Chinese now do, 
away from them. 

The only thing that would stop me would be the 
United States law, for I would try to gain my object 
by discarding legal money, and using a money of my 
own for all local trade and wage paying connected with 
the factories. I would circulate my own bills instead 
of using the United States money. 

Then did the Chinese w r ant to pack my money to 


[ 83 ] 

China, they Could pack and be damned. So could all 
the other dollar hunters. So long as I had paper and 
ink to print bills I would let the Chinese and dollar 
hunters have them. But the Chinese, etc., would not 
want them, and this is just what I would want. I would 
want a local money that Chinese, Yankees, etc., de¬ 
spised and would leave alone. Then they would not 
unload overproduction on my local market, and I could 
keep it myself. 

To see how this works, suppose England discarded 
gold and silver, substituting a paper money, good only 
for merchandise. Then, if the United States dumped 
200 millions worth of overproduction on England, they 
would have to take this paper. To gain by it they 
must buy 200 millions of English merchandise, which 
of course means exchange or stop selling. Neither 
could Germany, France, etc., unload on England, for 
they could not use the paper at home, it being only 
good for to buy in England with. 

By using such a paper, one can see, at one stroke 
England can end all the dumping in of overproduction. 
The whole world would have to trade not dollar hunt, 
as regards England. Yet if the rest of the world used 
gold and silver, England could unload on them. 

Some will say that this paper would spoil England's 
exchange trade. This is not so, for England could sell 
in other countries and buy return cargoes, the same as 
ever. It would not hurt an American trader, who, say, 
wanted to exchange a cargo of wheat for miscellaneous 
merchandise in England. All such a trader need do 
is, sell his wheat for paper and then buy his return 
cargo with the paper. 

But a dollar hunter will be hurt. He cannot sell a 


[ 84 ] 

cargo of wheat in England, and then pack the paper 
home to use it, say in stock gambling, real estate in¬ 
flating, or, as is the case in California, give it to 
Chinese. What could a Chinese-loving California scrub 
do with paper ?. His Chinese would not take it, and so, 
to one of Chinese taste, it would have no value. 

Suppose the towns in California, with the exception 
of the bay cities, used a hansa paper, (as I wall call 
merchandise paper,) then one can see that the bay cities 
could not unload on the interior towns, neither could 
the Easterner do any dollar hunting. Did San Fran¬ 
cisco sell in Los Angeles, Sacramento or other interior 
towns, she would have to take hansa paper. This 
would force San Francisco to buy as much from the 
others as she sold to them. 

63. About whether I could work this hansa paper or 
not, I have no doubt but what I could. The gain is 
immense, for by it one holds his home market. Were 
5,000 of San Francisco’s people using a hansa money 
between them, they need not fear any Chinese or others 
unloading on them. Then did they have overproduc¬ 
tion, they could unload on the coin users or mining 
camps. 

What I said I could do were I owner of San Fran¬ 
cisco factories, (that is always supposing the workmen 
stood by me, also that the United States government 
did not step in with brute force) the San Francisco 
factory owners, or the factory owners of any town on 
the coast, could' do. All they need do, is to act as 
one. Of course do they want to skin one another it is 
different. No one can do anything with men who have 
not sense enough to stand together. 


[ 85 ] 

Yet it is not necessary that all the factory owners act 
together. A dozen bosses with about 1,000 workmen 
between them can go for themselves. T hey can use a 
hansa paper between them, just as wholesale merchants 
use bills of credit, and with the rest of the people they 
can use legal money. I myself believe that ioo men 
all together could make good times for themselves un¬ 
der certain conditions, by combining and using paper* 
yet 1,000 would be better. 

64. The knowledge that the people can do away with 
Chinese competition, also make good times within 90 
days, by simply acting fair and square and using hansa 
paper, makes me rather indifferent to the Chinese 
question, etc. If the people want good times as I see 
it they can have them, but they must act a little more 
like men. We cannot have the pleasure of skinning 
one another, also treating each other as if we have no 
sense of right, and enjoy good times forever. But do 
we act the man we can have good times right along. 

Any 1000 men by learning and willingness to do a\ 
fair thing by one another can separate from the herd 
to-day and have good times. But it is necessary that 
these 1,000 be scattered among the different trades. 
A combination of all shoemakers will do no g-ood. 
But a combination of skilled workmen of many kinds 
can easily make a fine living. But before a 1000 can 
do this they must know their position as regards its, 
bearings towards their fellows. This they cannot get 
by laying around saloons, slogger halls, etc. They 
must learn. 

65. THE PRICE OF WHEAT. 

The price of wheat in the English market is set by 


[ 86 ] 

the money in circulation in English trade channels. 
Reduce the money in circulation one half and nearly 
all the incomes of England are reduced one half. The 
people therefore could not pay more than one half what 
they now pay, and so wheat would go still lower. So 
one can say when English incomes or wages go up, 
the price of wheat can go up. 

War can send up the price of wheat by reason of the 
government’s borrowing idle money and buying with it. 
This will send up wage and incomes and so enable the 
people to pay a better price. When on the strength 
of war rumors wheat stiffens a little, it is because idle 
money is used by speculators to buy up wheat. But 
such prices can not be maintained unless the wages, 
etc., of England go up. Speculators buying from one 
another and the consuming public are two different 
things. The money must get into the mass and circu¬ 
late before wheat, cotton, etc., go up and stay. 

Should competition reduce still lower the coin in cir¬ 
culation, then wheat will be still lower in England. 
Should some of the idle money go into circulation then 
wheat will go up. Put as much money in circulation 
in 1886 as circulated in 1880 and the price of wheat 
can be as in 1880. One can see that the Americans 
by taking coin from English trade channels and bring¬ 
ing it home, do their best to reduce the price of wheat, 
cotton, etc. 

66. There is plenty of idle money in the world, and is 
it put into circulation, wages, prices, etc., can go up. But 
is it not circulated, then prices will not go up. This 
idle money can be used to trade in factory, railroad, 
etc., stock, also buy and sell real estate, bonds, etc., 


but it can not be circulated unless it builds new roads, 
factories, ships, etc! 

If England invests idle money in South America, 
Africa or Asia, this money will come back by trade 
channels, so going into circulation. It will give em¬ 
ployment to ships and factories, and in every way 
make good times. It is mainly the arresting of this 
movement of money, that brings on the hard times of 
to-day. For the 40 years before 1873 there was a 
large amount of capital building. This ended about 
1873, and unless it is again carried on good times will 
not come again. The boom of 1879-81 was due to 
such capital building. 

Shortly after 1881, capitalists began to stop build¬ 
ing, claiming that there was already too many railroads, 
etc. The stoppage caused factories, ships, etc., also to 
become too many, bringing on the situation of to-day. 
Now any reasoning man can judge for himself, if there 
Is apt to beany such capital building in the future. If 
not then how are we ever to get the idle money again 
Into circulation is the question? If there are too many 
railways, ships, etc., to-day, there is little hope of any 
one building any more. 

67. Another effect of stoppage of capital building is, 
that it throws out of employment industrial people. A 
large number of the industrial people nowin Europe and 
United States, were called from the farm class to assist 
in capital building. They created a great demand for 
factory products, while giving a large market for farm¬ 
ers’ products, which again resulted in large sales of fac¬ 
tory products to farmers. 

Do these people again go back to farming, of course 
the factory and farm demand they created will disappear, 


L 88 J 

causing factories, etc., to lie idle, while degrading the 
farm class. England is full of such idlers, while 
in United States it is said millions loaf. Shall all these 
go back to farms, is the question ? 

68. One often hears of the fact, that there are too 
many young men wanting to be traders, clerks, etc., and 
too few wanting to be mechanics, etc. Those who speak 
so, do not take into account that there was only a de¬ 
mand for 7,800 industrial workers per each 100,000 
people in the United States in the census year of 1880, 
while in West Europe 13 or 14,000 industrial workers 
are worked. Also, I believe in Europe the 14,000 
average more months work in a year than the 7,800 did 
in 1880. Since 1880 there have been many discharged, 
and if, perhaps, the 7,800 did work, they do not aver¬ 
age as many days labor as in 1880. 

The farm life in United States is a dog’s life, It is 
an isolated shanty existence. Only an existence can 
it be called. A few farmers do well, but the average do 
not get much. If the American people want to get 
youths to remain on a' farm, they should not educate 
them, for mental activity and a scrub farm life do not 
go together. This accounts for men disliking farm life. 

Again, in the factories, shops, etc., of United States, 
driving is done. It seems as if the Yankees want to 
make the industrial class as obnoxious as possible. 
This driving, with its result of rushing, is helped by the 
fact that we are a cheap race. As only scrub work is 
wanted, of course driving can be done. If the Ameri¬ 
can people become more of a quality people, they would 
have to stop driving and rushing, because good work 
cannot be done by rushing, and good mechanics do not 
as a rule stand driving so well. It is because the work 


[ 8 9 ] 

demanded is scrubby that the work is done with a rush. 
America is a good country for a scrub and a poor one 
for good workmen. 

Now I am convinced, if the work were but made 
pleasant, and these scrubs who hire out to drive their 
tellows, discharged; also that a finer grade of work were 
demanded, that there would be more who would work 
at industrial work. But the brutal drivers force many 
of the best workmen out of the industrial class wherever 
they are used. 1 hey are a low class, and since slavery 
was abolished have lost their old job of negro driving. 
The Yankee ship captains who figure so prominently 
in our courts are a part of the same breed the drivers 
are taken from. They are an ignorant, immoral, rotten 
souled set of scrubs, who, were good work in demand, 
would not be heard of. 

Artistic work with time to do it in, and scrub work 
with a dog over one, who never is satisfied, are two 
different things. Could I get good work say by the 
piece I never would think of being a clerk, etc. So 
my experience convinces me all others who like good 
work, feel. 

69. It is often asked does machinery hurt. I say yes, 
when used in a wrong spirit. If used rightly it should 
benefit not hurt, but it seldom is. Suppose Germany 
could by using machinery do with 7,000 industrial 
workers what is now done by 14,000. One can see 
that the 7,000 forced from a job, must either loaf half 
the time and by competition with the 7,000 manage to 
live, or they must overcrowd and degrade the farm or 
non-producing classes. 

To enter the farm class, supposing that to be possi- 


[90] 

ble, would degrade the farm class. Also it would re¬ 
duce the industrial demand. To enter the non-pro¬ 
ducing class would also degrade. So one can see Ger¬ 
many would not gain, but become degraded by follow¬ 
ing the Yankee style. Instead of 14,000 easy go lucky 
Teutons, one would find 7,000 rushed like dogs. The 
only ones who would gain would be that class that pro- 
duces drivers. But as Germans sooner fight under a 
Yunker than be driven like a dog by a Yankee spirited 
driver, one need not fear Germany will ever become a 
Yankee spirited country. 

I myself am Teuton enough to prefer to be bossed by 
a Yunker, than to be bossed by such miserable scrubs 
they make drivers of in United States. Just imagine 
what pleasure it is to be under men like the ruffianly 
Yankee ship captains that our courts show exist. A 
Yunker is bad enough, but he has some honor, while a 
driver has no more than a serf. 

Machinery if it would cause a cutting down of the 
hours of labor, and leave still 14,000 industrial workers 
per each 100,000 German people, would not hurt. Yet 
here comes in another view and that is that fine quality 
work is more hand work than machinery. If United 
States people wanted twice as fine work, also more 
original work, more hand work would be necessary. 
It is because all are of one taste in the United States 
and this a scrub taste, that much of the machinery is 
used. 

Again, did machinery reduce the 14,000 German 
workers to 7,000 for each 100,000 people, the wages 
of the 7,000 could be higher were the tariffs also raised. 
This to guessing people would seem a gain, for they 
would point to the fact that wages go up. But any 


[9i] 

reasoning man can see that this is not the case, for 
the higher wages come by making tramps of other 
workmen. Rushing acts the same. If 7,000 Yankees 
by rushing and machinery, do the work of 15,000 when 
working German style, of course the wages go up, for 
the 7,000 get all the work that should go for 15,000. 

If machinery using was accompanied by a taste for 
a finer quality of living, then, as more work would be 
demanded, it would be beneficial. But economy, com¬ 
petition, coarse taste, etc., all are against an increase in 
the quality of living, and as regards shelter, etc., I 
have shown in Chapter X. that there is more wealth 
created by building cheap than by building finely. 

70. It is reported that the New England manufacturers 
are advised to try and capture the trade in fine goods, 
which are now bought in Europe, because the South 
and West are now beofinnino- to make their own coarse 
industrial products instead of buying of New England. 

It is well known that the manufacturers of New Eng¬ 
land have been, for years, bringing into their State 
the cheapest and scrubbiest tasting workmen they could 
find. Now, I think it will be a hard job to get scrubs 
to do fine work, and that New England must get a 
different class of workers before she can do the fine ar¬ 
tistic work now done in Europe. This will be one dif¬ 
ficulty in the way of New England changing. 

Again, suppose that to-day the South and West re¬ 
ceive coin from Europe for cotton, wheat, etc., which 
coin the Yankees (New Englanders) receive in return 
for manufactures, and then pay it to Europe for 
artistic products. One can see that if this outlet to 
Europe is closed, also the South and West produce man- 


ufactures for themselves, that the movement of money 
now going on will be blocked. This will cause all kind 
of difficulties. The South and West receive coin from 
outside and must pay it out or it will pile up, raise wage 
if circulated, and end in disaster. 

d hus two difficulties are in the way of New Eng¬ 
land trying to make artistic productions. One, that 
she has not the right kind of men, and the other the 
derangement such a stoppage of the outgo of money 
would bring about. The paupers New England has 
been importing for decades will be found a nuisance 
when finer work is attempted. 

71. The Yankee is himself to blame for much of the 
growth of manufacturing in the South and West. He 
drains these districts of much money, and so helps to 
make labor cheap in the South and West. As I see 
it the proper way is to keep as much money circulat¬ 
ing in the South and West as is possible, which of 
course will keep wages up and make manufacturing 
impossible. For example, suppose with free trade, * 
England could unload 300 millions of overproduction 
on United States each year. Now did England take 
the 300 millions of money received out of United States 
a fall in wages, etc., would result, which may allow the 
United States manufacturers to hold their own. So 
by reducing wages in United States, the English would 
hurt themselves. 

This is what the Yankees do. They pack the money 
home, instead of using what they make in South and 
West to buy or build railroads, etc., in South or West. 

If they do not want to do this, then they better stop 
making overproduction, and spend the time saved in 


learning. All overproducing is good for is to get the 
better of another, and this an outsider. 

I he North Atlantic States are therefore themselves 
to blame, if they, after for years making it a practice to 
invest overproduction money in South and West, stop 
this investing on the plea that there are too many roads, 
and then reduce the coin in circulation in South and 
West, so forcing the South and West to produce for 
themselves. 

72. Until lately the English had things their own way, 
but the growth of economy has hurt the English. For 
example : they could formerly, say, invest money in 
United States and get it back without overproduction. 
The same all over the world. To-day do they invest 
in United States the Yankees can, by saving, pile it 
up in banks. This of course keeps it out of circula¬ 
tion,'for if, when 200 millions come into United States 
there are 200 millions taken from circulation and piled 
in banks, no inflation takes place. For this reason, it 
is risky for England to invest in United States. 

When England invests in other countries, say like 
South America, the Germans, etc., can perhaps unload 
and get some of the money. One can see that if Eng¬ 
land cannot hold her own against Germany, etc., then 
she has no longer the power to invest money outside 
and get it back. This makes a big difference in Eng¬ 
land’s situation to-day. Of course, if England drops 
wage, she can counteract such actions by Germany and 
others, yet her trades unions are against cutting wage; 
while rents, etc., suffer from such cutting. 

If the West and South adopt the Yankee tactics of 
eeonomy, one can see that even did the Yankees in- 



[ 94 ] 

vest money in West and South, it may never circulate. 
So gradually New England must, like England, be¬ 
come satisfied with the work her own civilization cre¬ 
ates. This means that, in the end, economy may have 
to be given up. 

73. ONE EFFECT OF STRIKES. 

There is plenty of idle money in Europe and United 
States to-day, which, if put into circulation, would allow 
of workmen striking and raising wages. But one na¬ 
tion can not circulate more because if it did the other 
nations would unload overproduction and take the 
money away. So unless United States raises the tariff, 
the American workmen cannot raise wage. Also 
should competition cause prices to fall the wages must 
come down. 

San Francisco is governed by the same laws. If 
wages and prices are too high, then Easterners can un¬ 
load on the city the same as Chinese can. This is 
what hurts the city to-day. Wages should come down 
in this case, and workmen should not resist by strik¬ 
ing. 

By striking for higher wages, workmen cut down 
the power to sell overproduction, or even the merchan¬ 
dise necessary for to buy farm products, etc., with. 
Were there no Chinese in San Francisco, and 10,000 
white workmen worked on overproduction, while 40,- 
000 worked for the city, by striking for higher wage 
and getting it, the 10,000 workmen could lose a job 
and only 40,000 find work. By sending wage up too 
high the 40,000 could be reduced. So workmen can 
reduce the amount of work by too high wages. 

This trying to get higher wage, it will be seen, and 


[ 95 ] 

the reluctance of workmen to come down, shows how 
the tendency is to always force people back on their own 
consumption. As soon as the Chinese leave Cal¬ 
ifornia, the workmen, if they can, will send up wage, 
which will close out all overproduction work. Fewer 
workmen can be worked when balanced trade is the 
rule, than when overproduction can be unloaded out¬ 
side. The cutting down of England's power to un¬ 
load, which the trade unions of England are partly 
responsible for, can be one of the causes why so many 
English workmen to-day are loafing. 


CONCLUSION. 

I can note in conclusion that any 1000 or even ioo 
fine first class workmen scattered among the various 
trades can by combining easily have good times. All 
that is needed, is that they come together and by using 
a hansa paper keep the dollar hunters from unloading 
on them. 

Those who are willing to study and learn need not 
suffer. This conclusion my studies have forced me to. 
It is only those who do not want to learn to do 
mechanical work, that can not help themselves. 

This one can see by considering what would be 
necessary to make a combination of 20 or 100 or 1000 
men successful. The knowledge to run the factories 
and do all kinds of work necessary in order to make 
the best of everything is necessary. With scrubs one 
could do little. The knowledge is what is wanted 
more than anything else. 

Twenty young men with 500 or 1000 capital each or 


0 




[ 96 ] 

just enough to enable each to work for himself at his 
trade, can, are they scattered among 20 of the main-liv¬ 
ing trades make an effective combination. They would 
make a combination of 20 small manufacturers. Are 
they successful and can in time hire workmen, each of 
the 20 can build up a factory. So in perhaps a few years 
the 20 can be each at the head of a large factory sys¬ 
tem. To do this, however, requires a thorough knowl¬ 
edge by each of the 20 of his trade. 

This is all that I consider necessary for to make 
good times for any 20 or more men in United States- 
How 20 or more men who sooner lay around saloons 
and slogging dens instead of learning can have 
good times, I can not tell. I can not tell how ignorant 
people who prefer to be ignorant can have better times 
than they now get and will get. 

One must have the men. With serfs or those who on¬ 
ly care for serfs living and pleasures one can do little. 
But any 1000 men with the necessary knowledge of 
factory production, are foolish to allow Chinese, Yankees, 
etc., to bother them. 

[the end] 



t 


NOTES 


ON 

CIVILIZATION, * OVER-PRODUCTION, 
COMPETITION, PROTECTION, 

SILVER QUESTION, CHINESE, ETC. 

-GIVING- 

A CA USE TOR the PRESENT DULL TIMES 


-BY- 


Frederic Grimm. 

* 


SAN FRANCISCO : 
1886. 


1. 





























































































